On February 7, 2022, the Tax Court issued a Memorandum Opinion in the case of Williams v. Commissioner (T.C. Memo. 2022-7). The primary issues presented in Williams were (i) whether the disallowance of the petitioner’s deductions was warranted; and (ii) whether frivolous position penalty was warranted. A Brief Background of Williams v. Commissioner The IRS issued a notice of deficiency, in which it disallowed certain deductions claimed by the petitioner (Larry) in connection with his business. As Judge Urda observes, “[r]ather than attempting to demonstrate errors by the IRS in its determination, [Larry] has chosen to focus his challenge on frivolous and groundless arguments.” Representatives Larry appeared pro se. The IRS was represented by Mike Foster and Dan Munce, two of the best General Counsel attorneys I have ever met. Needless to say, this wasn’t a fair fight – even before the frivolity entered into the equation. The Frivolity in…