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125 T.C. 14 (2005); Ansley-Sheppard-Burgess Co. v. Commissioner,
104 T.C. 367, 371 (1995).
We note at the outset that the years before the Court in
this collection action are 1991, 1992, and 1993. Nevertheless,
petitioners have asserted that respondent misapplied payments to
tax years which are not subject to this collection action. In
this connection, we have jurisdiction to review the issue of
whether respondent has properly applied and accounted for
payments applied to other tax years since the appropriateness of
the collection action for the determination years may be affected
by consideration of such facts and issues. Freije v.
Commissioner, supra.
We have carefully reviewed the record in this matter as to
petitioners’ assertions regarding the misapplication of offsets
and payments to nondetermination years. The record does not
reflect a misapplication of payments by respondent. We note that
there is nothing in the record reflecting a direction by
petitioners as to how payments should be applied. Without a
specific direction from petitioners, respondent is free to apply
payments and offsets as he chooses. Rev. Rul. 73-305, 1973-2
C.B. 43.4 Of course, if the record reflected an application of a
payment to a year where there is not a proper assessment of tax,
4 Rev. Rul. 73-305, 1973-2 C.B. 43, was superseded by Rev.
Proc. 2002-26, 2002-1 C.B. 746, which provides that unless the
taxpayer provides specific written directions as to the
application of the payment, the Commissioner will apply the
payments that “will serve its best interest.”
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