Joseph Paul Freije - Page 16

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         his returns for some or all of the years in issue was changed                
         inappropriately by respondent.11                                             
         Proposed Collection Alternative                                              
              We can readily dispose of petitioner's proposed collection              
         alternative.  His offer of 25 cents per year for 1997, 1998, and             
         1999 is frivolous, and the Appeals officer's rejection of it was             
         not an abuse of discretion.                                                  
              Although respondent now concedes he may not collect the                 
         unpaid balance of petitioner's 1997 liability by levy, we                    
         nonetheless find it necessary to consider that year because,                 
         first, petitioner claims that payments that were intended to                 
         satisfy his 1997 liability were instead applied to 1995.  If                 
         these payments were improperly applied to 1995, then respondent's            
         computation (and assessment) of the additions to tax for late                
         payment and failure to pay estimated tax for 1997 would be                   

               11 We shall also assume, without deciding, that by                     
          mentioning his amended returns for 1998 and 1999 in his request             
          for a hearing, petitioner thereby raised challenges at the                  
          hearing to the underlying tax liabilities as originally reported            
          in the 1998 and 1999 returns.  Regardless of whether these issues           
          are treated as having been raised, there is no effect on the                
          outcome because the challenges, as discussed infra, have no                 
               While petitioner also mentioned his amended return for 1997            
          in his hearing request, we conclude that any issue thereby raised           
          is moot as a result of respondent's concession that the levy for            
          1997 should not proceed.                                                    

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