Spriggs v. United States

OPINION

RICHARD L. WILLIAMS, District Judge.

This matter comes before the Court on the parties’ cross-motions for summary judgment. The case presents the legal issue of the proper method for calculating penalties under § 6700 of the Internal Revenue Code, 26 U.S.C. § 6700 (1982), amended by 26 U.S.C. § 6700 (Supp. Ill 1985). Specifically, does § 6700 provide for a penalty of $1,000 per sale of an interest in an abusive tax shelter, or is the $1,000 penalty a minimum penalty that applies only when 10% (now 20%) of the income derived from the salesperson’s overall sales activity for the year is…