Newton K. and Kimberly A. McKoin - Page 4




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          respondent’s overall determination.  Further, in the Form 1040X,            
          petitioner claimed an overpayment in the amount of $2,373, which            
          he calculated by subtracting total tax of $4,451 from total                 
          payments of $6,924.4                                                        
          B. Petitioner’s Tax Liabilities for 1983 Through 1990                       
               Prior to 1992, petitioner entered into an installment                  
          payment agreement with respondent.  This agreement, which was               
          memorialized using Form 433-D, Installment Agreement, pertained             
          to income taxes owed by petitioner for the taxable years 1983               
          through 1990 in the amount of approximately $59,300.  The                   
          agreement has remained in effect continuously through the date of           
          submission of this case.                                                    
               As originally executed, the Installment Agreement obligated            
          petitioner to pay 10 percent of his monthly gross receipts to               
          respondent.  In or about 1992, the agreement was amended to                 
          obligate petitioner to pay 20 percent of his monthly gross                  
          receipts to respondent.  The agreement provides that amounts paid           
          by petitioner will “be applied to current year’s estimated tax.”            
               The Installment Agreement includes a number of conditions.             
          Among these conditions are the following three:                             
               All Federal taxes that become due during the term of                   
               this agreement must be paid on time.                                   
               Any Federal or State refunds that might otherwise be                   


               4 Mathematically, the amount of the claimed overpayment                
          should have been $2,473.                                                    





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