The joy of frivolity. Having fun at the expense of others (playing practical jokes, for example) can give yourself a good laugh. However, it is not a good idea to do it in Tax Court.
As noted in Roth Tax Updates, Glen Silver filed a petition in Tax Court in regards to his 2001 and 2002 returns (which he did not file). In Tax Court, he “…did not raise any bona fide dispute….” This was his third try in Tax Court, and he had been fined $3,000 for his frivolous arguments on his last attempt. He had also been warned, “[The Court] urge[s] him to reconsider any positions he takes that may result in an increase in penalties for making similar arguments in that case when it’s called next year about this time.”
He didn’t reconsider his positions. No surprise, he was fined $25,000.
And the Court noted that he is trying a fourth time in Tax Court, in a petition likely to be heard in 2006. The Court warned Mr. Silver, “…if he pursues the same arguments in that case, he may expect an additional penalty under section 6673.”
Case: Silver v. Commissioner, T.C. Memo 2005-281