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Bank with regard to petitioner’s unpaid taxes for 1991 and 1992.
Inasmuch as these collection actions were initiated well before
the effective date of RRA 1998, it follows that we do not have
jurisdiction to review those matters in this proceeding.
The record also shows that, on April 24, 2000, respondent
applied petitioner’s overpayment for 1999 to offset petitioner’s
unpaid taxes for 1992 and 1993. Although respondent initiated
the offset after the effective date of RRA 1998, respondent’s
application of a taxpayer’s overpayment for one taxable year to
offset the taxpayer’s liability for another taxable year does not
constitute a collection action that is subject to review under
sections 6320 or 6330. In particular, the Commissioner’s
authority to credit an overpayment to offset any taxpayer’s
liability is set forth in section 6402. An offset under section
6402 is distinguishable from, and does not constitute, a levy
action. See Belloff v. Commissioner, 996 F.2d 607, 615-616 (2d
Cir. 1993) (comparing a levy with a “setoff”); Karara v. United
States, 90 AFTR 2d 2002-6264, 2002-2 USTC par. 50,667 (M.D. Fla.
2002) (holding that the Commissioner’s partial offset of the
taxpayer’s liability for 1993 by crediting the taxpayer’s $300
refund for 2000 did not violate section 6330(e)(1), which bars
the Commissioner from issuing a levy while collection review
proceedings are pending); Trent v. Commissioner, T.C. Memo. 2002-
285 (holding that the Commissioner’s offset of the taxpayer’s
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