Opinion
13494-20
09-08-2021
James E. Van Pelt, Petitioner v. Commissioner of Internal Revenue, Respondent
ORDER
JOSEPH W. NEGA JUDGE.
By notice served April 27, 2021, this case was calendared for trial at the session of the Court to be conducted remotely commencing on September 27, 2021, for cases in which Hartford, Connecticut, is listed as the place of trial. Attached to the notice setting case for trial was the Court's Standing Pretrial Order, which advises the parties, including pro se taxpayers, of the requirements for preparation of cases set for trial in this Court, specifically exchange of documents and stipulations in accordance with Rule 91.
Unless otherwise indicated, all Rule references are to the Tax Court Rules of Practice and Procedure and all statutory references are to the Internal Revenue Code, Title 26, U.S.C., in effect for the year in issue.
A review of the record reveals that petitioner may be taking positions that have been deemed frivolous or groundless in other cases. We take this opportunity to advise petitioner that, if he continues to make these types of arguments, he is at risk of the Court imposing a penalty against him under section 6673(a)(1). Section 6673 authorizes the Tax Court to require a taxpayer to pay to the United States a penalty of up to $25,000 if a taxpayer institutes or maintains a frivolous or groundless position or institutes or maintains a proceeding primarily for delay. Therefore, petitioner is warned that should he continue to pursue frivolous or groundless arguments before the Court, or if he insitutes or maintains a case primarily for delay, he may be subject to penalties under section 6673 up to the amount of $25,000. Wnuck v. Commissioner, 136 T.C. 498, 513-514 (2011) (imposing a section 6673 penalty for tax protester arguments).
We therefore stress to petitioner that in preparation for trial, he should be preparing legitimate issues and working cooperatively with respondent's counsel. Petitioner is required to participate in his Tax Court case which requires him to exchange proper documents and information with counsel for the Internal Revenue Service (IRS) as part of the pretrial process (before trial) and then introduced at trial if the case has not been settled prior thereto. In the meantime, the Court expects the parties to continue to work to settle this case or narrow the issues for trial.
Upon due consideration and for cause, it is
ORDERED that petitioner is hereby put on notice that if he continues with the course of frivolous and groundless arguments that he has made in this case, the Court may impose a penalty not in excess of $25,000 under Section 6673. It is further
ORDERED that the Clerk of the Court shall send with petitioner's copy of this Order information concerning tax clinics available on the Hartford, Connecticut, calendar usually sent with the Notice Setting Case for Trial that may offer free legal assistance to low-income taxpayers in the event that petitioner should with to seek assistance with respect to this case generally. A list of these clinics is also available on the Tax Court's website, www.ustaxcourt.gov. Petitioner is also advised that tax clinics generally provide assistance and advice to low-income taxpayers who have disputes with the IRS. However, tax clinics are not part of the IRS or the Court, and the Tax Court does not endorse any particular clinic.