Skarbinski - TPs mitigate 6673 by abandoning friv positions

[jcolvin2]

https://www.ustaxcourt.gov/InternetOrde ... 2&Todays=Y

The IRS proposes that we impose such a penalty [6673] on the Skarbinskis. We will do so. Their position in their petition was indeed frivolous, as was their opposition to the IRS's motion for summary judgment (filed February 29, 2012) after the warning in our order of February 10, 2012. However, tending in the Skarbinskis' favor are these facts: (1) In addition to their frivolous positions, they eventually had non-frivolous contentions that resulted in a reduction of the deficiency the IRS had determined. (2) They eventually cooperated in litigating their non- frivolous contentions. (3) They were forthright abouttheir frivolous positions, rather than attempting to hide their receipt of income. (4) They conducted themselves civilly·before the Court. And (5) they now undertake to comply with the tax laws in the future.

Nonetheless, after all the good that we can say about the Skarbinskis, it remains true that they took frivolous positions that prevented the IRS from assessing tax that they certainly owed, and that burdened both the IRS and this Court with all the chores necessary for the adjudication of an inevitable tax liability. The penalty of section 6673(a) is designed to address petitioners who conduct themselves in this manner.

In determining the amount of the penalty, we take account of all the foregoing facts. We impose today a $1,000 penalty, which is a relatively modest penalty, given that we have the discretion to impose a penalty as high as $25,000. The Skarbinskis should be aware, however, that if they should ever repeat their maintenance of frivolous tax litigation, they would stand in peril of a much steeper penalty.

[LaVidaRoja]

AFAI can tell, they got off very,very lucky. Prior case - docket 6202-11 decision was handed down earlier this month. Looks like they got a warning there. No subsequent dockets, AFAIK