Howard and Everlina Washington - Page 16




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                    In the case of any overpayment, the Secretary                     
               * * * may credit the amount of such overpayment * * *                  
               against any liability in respect of an internal revenue                
               tax on the part of the person who made the overpayment                 
               * * *.                                                                 
               When petitioners filed their 1997 return in April 1998, they           
          had an unpaid liability with respect to their taxable year 1990             
          that exceeded the amount of petitioners’ 1997 overpayment shown             
          in that return.  We hold that section 6402(a) authorized respon-            
          dent to credit petitioners’ 1997 overpayment against their unpaid           
          1990 liability.                                                             
               We now address what we understand to be petitioners’ posi-             
          tion that the Court should review respondent’s failure to abate             
          any penalties and interest under section 6404 with respect to               
          their taxable years 1994, 1995, and 1998 and should abate any               
          such penalties and interest.  We turn first to petitioners’                 
          position regarding respondent’s failure to abate interest under             
          section 6404.  The record does not establish that petitioners               
          raised at their Appeals Office hearing respondent’s failure to              
          abate interest under section 6404.11  Consequently, we shall not            
          consider that matter.12  See Magana v. Commissioner, 118 T.C.               

               11In support of their contention that they raised at their             
          Appeals Office hearing respondent’s failure to abate interest               
          under sec. 6404, petitioners rely on a document that they at-               
          tached to their answering brief and that is not part of the                 
          instant record.  The Court has disregarded that document.  See              
          Rule 143(b).                                                                
               12Assuming arguendo (1) that the record before us had estab-           
                                                             (continued...)           





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