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proposed levy to which the determination being appealed relates.
Sec. 6330(e)(1).
II. Levy Versus Offset
A levy is distinguishable from an offset. See, e.g.,
Belloff v. Commissioner, 996 F.2d 607, 615-616 (2d Cir. 1993)
(comparing discussion of "levy" in United States v. Natl. Bank of
Commerce, 472 U.S. 713, 720 (1985), with "setoff" in United
States v. Munsey Trust Co., 332 U.S. 234, 239 (1947)), affg. T.C.
Memo. 1991-350. The Commissioner’s levy authority derives from
the Code, sec. 6331, and it allows the Commissioner to proceed
administratively to assert the Government’s rights in the
property of the taxpayer held by any person, see United States v.
Natl. Bank of Commerce, supra at 720-721. Offset is the common
law right of a creditor, shared by the Government and all
creditors, to apply the unappropriated moneys of the debtor in
the hands of the creditor in extinguishment of the debts of the
debtor’s due the creditor. United States v. Munsey Trust Co.,
supra at 239. Section 6402(a) contains a statutory counterpart,
which authorizes the Secretary to credit a taxpayer’s overpayment
of tax against any tax liability of the taxpayer.
Based on the distinction between levy and offset, and the
limitation of section 6330 to levy actions, we have held that the
Commissioner’s application of a taxpayer’s overpayment for one
taxable year to offset the taxpayer’s liability for another
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