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to petitioners’ 1990 tax liability. Petitioner has provided no
credible evidence that respondent agreed to apply petitioners’
payments first to petitioners’ 1994 tax liability until such
liability was extinguished. On the contrary, the written terms
of the installment agreement provided that “[respondent] will
apply all payments on this agreement in the best interest of the
United States.” Petitioners have neither contended nor provided
evidence that respondent’s application of petitioners’ payments
was not in the best interest of the United States. Consequently,
we conclude that respondent properly applied petitioners’
payments under the installment agreement.
Moreover, the terms of the installment agreement required
petitioners to timely file Federal income tax returns and pay
taxes due and provided that respondent would cancel the
installment agreement if petitioners failed to comply with the
terms of the agreement. As noted above, petitioners failed to
file Federal income tax returns and pay taxes with respect to
their 1999, 2000, 2001, 2002, and 2003 tax years. Consequently,
we conclude that respondent properly terminated the installment
agreement.
During the section 6330 hearing, Settlement Officer Munson
provided petitioner with the opportunity to raise any relevant
issue relating to the unpaid tax or the proposed levy, and, as
described above, Settlement Officer Munson appropriately
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Last modified: May 25, 2011