I had to find a substitute for the worn-out shot-across-the-bows cliché, so I took my simile from the PRC-Philippines Second Thomas Shoal standoff. But the story is the same: Tax Court’s adoption of the one-explicit-warning before handing out a Section 6673 frivolity chop.

Today’s contestant is Charles Scott and Linder Scott, T. C. Memo. 2024-27, filed 3/7/24. They’ve tried the same arguments before (see T. C. Memo. 2024-27, at p. 3), but Judge Courtney D. (“CD”) Jones put paid to them in the Order cited in this opinion.

Now Judge Christian N. (“Speedy”) Weiler has Charles’ latest attempt to resuscitate his previous losers.

“In a prior proceeding we ruled against these same petitioners, considered these same arguments, and ultimately determined that these disability payments to Mr. Scott are taxable, since we found no evidence to suggest that the payments at issue were attributable to an injury or sickness sustained through Mr. Scott’s active service in the armed forces, the Coast and Geodetic Survey, or the Public Health Service. See Scott v. Commissioner, No. 3330-18 (T.C. Oct. 22, 2021) (No. 52).

“Again, considering the evidence before us, we hold petitioners’ argument to be without merit, and we will sustain the adjustment to income as determined in the notice of deficiency.” T. C. Memo. 2024-27, at p.3.

I didn’t blog Charles’ 2021 case, as there was a more interesting Child Tax Credit case that day.

But Judge Speedy Weiler opens the valve on the water cannon.

“We take this opportunity to warn petitioners that the continued assertion of these same arguments, having now been considered twice by this Court, may result in a penalty of up to $25,000 under section 6673(a).” T. C. Memo. 2024-27, at p. 3.