26 U.S.C. §6702
TITLE
26 >
Subtitle
F >
CHAPTER 68 >
Subchapter B >
PART I > Sec. 6702.
Sec. 6702.
- Frivolous income tax return
(a) Civil penalty
If -
(1) any individual files what purports to be a return of the
tax imposed by subtitle A but which -
(A) does not contain information on which the substantial
correctness of the self-assessment may be judged, or
(B) contains information that on its face indicates that the
self-assessment is substantially incorrect; and
(2) the conduct referred to in paragraph (1) is due to -
(A) a position which is frivolous, or
(B) a desire (which appears on the purported return) to delay
or impede the administration of Federal income tax laws, then
such individual
shall pay a penalty of $500.
(b) Penalty in addition to other penalties
The penalty imposed by subsection (a) shall be in addition to any other
penalty
provided by law.]
Lovell v. United States (755 F.2d. 517):
This court recently warned taxpayers who put forth frivolous arguments
in bad faith that we would not hesitate to impose sanctions pursuant
to Fed. R. App. P. 38. Granzow v. Commissioner, 739 F.2d 265, 269-70
(7th Cir. 1984). See also Edgar v. Inland Steel Co., 744 F.2d 1276,
1278 (7th Cir. 1984);
United
States
v. Ekblad, 732 F.2d 562 (7th Cir. 1984). Other circuits have imposed
sanctions in § 6702 cases, see Martinez v. IRS, 744 F.2d 71 (10th
Cir. 1984) (per curiam); Davis, 742 F.2d at 173; Baskin v.
United
States,
738 F.2d 975, 977 (8th Cir. 1984) (per curiam); Crain v. Commissioner,
737 F.2d 1417, 1418 (5th Cir. 1984), and we believe sanctions are
appropriate in this case. Accordingly, the
United States shall recover, from plaintiffs, reasonable attorneys' fees and costs
incurred in defending this appeal. The government shall file with
this court, within 15 days of the date of this order, a submission
as to the fees and costs it has incurred on appeal. The judgment
of the district court is AFFIRMED.
[Lovell v. United States (755 F.2d. 517)]