Simon L. and Patricia M. Richard - Page 12

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          by the crediting of 6 payments of $380 each at roughly monthly              
          intervals from August 21, 1998, through April 11, 1999.7                    
               Respondent argues on brief that petitioners have not "shown            
          that any payments designated for 1993 * * * were applied to                 
          another year".8  We disagree.  We are persuaded on the basis of             
          the foregoing evidence that petitioners made payments pursuant to           
          the 1993 installment agreement that respondent credited against             
          their 1991 and 1992 liabilities.  The payments that respondent              
          has stipulated petitioners made under the 1993 installment                  
          agreement are otherwise unaccounted for in the Forms 4340 in the            
          record covering petitioners' taxable years 1991 through 2000.               
               To the extent respondent may be suggesting that the payments           
          made pursuant to the 1993 installment agreement were                        
          undesignated, or that respondent was otherwise free to apply them           
          to petitioners' 1991 or 1992 liabilities, we also disagree.                 
          Installment agreements are devices for the collection of the                
          liability to which they relate.  Section 6159(a) authorizes the             

               7 A portion ($17.24) of the penultimate payment (Mar. 8,               
          1999) and all ($380) of the last payment (Apr. 11, 1999) were               
          treated by respondent as overpayments for 1991 and were                     
          transferred to and credited against petitioners' 1992 liability.            
               8 Respondent also argues that petitioners may not contest              
          the application of the 1993 installment agreement payments to               
          1991 because the issue was not raised in their petition or pre-             
          trial memorandum.  However, the notice of determination indicates           
          that petitioners raised this issue at the Appeals hearing.                  
          Issues raised at the Appeals hearing or otherwise brought to the            
          attention of the Appeals Office are within our jurisdiction for             
          review.  Magana v. Commissioner, 118 T.C. 488, 493 (2002).                  





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