- 9 -
delinquencies or to refund them to the taxpayer”); Kalb v. United
States, 505 F.2d 506, 509 (2d Cir. 1974) (rejecting the argument
that because tax overpayment was voluntary, IRS was bound to
comply with the taxpayer’s direction about how to apply that
payment; section 6402(a) “clearly gives the IRS discretion to
apply a refund to ‘any liability’ of the taxpayer”).
Clearly, petitioners’ right to designate payments does not
extend to overpayments. Respondent’s application of petitioners’
1995 overpayment to their 1985 liability falls within his
authority to credit overpayments to any liability for any tax
year and was, therefore, proper.
2. Whether the Appeals Officer Abused Her Discretion in
Sustaining the Proposed Levy
Section 6330(c) prescribes the matters that a person may
raise at an Appeals Office hearing. Section 6330(c)(2)(A)
provides that a person may raise collection issues such as
spousal defenses, the appropriateness of the Commissioner’s
intended collection action, and possible alternative means of
collection. See Sego v. Commissioner, 114 T.C. 604, 609 (2000);
Goza v. Commissioner, 114 T.C. 176, 180 (2000).
The taxpayer may raise challenges “to the existence or
amount of the underlying tax liability”, however, only if he “did
not receive any statutory notice of deficiency for such tax
liability or did not otherwise have an opportunity to dispute
such tax liability.” Sec. 6330(c)(2)(B). Pursuant to section
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011