                           T.C. Memo. 2003-5



                     UNITED STATES TAX COURT



                  JANICE BULLOCK, Petitioner v.
          COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 6713-02L.              Filed January 7, 2003.



     Janice Bullock, pro se.

     Jerome D. Sekula and Jeffrey C. Venzie, for respondent.



                       MEMORANDUM OPINION


     ARMEN, Special Trial Judge:     This matter is before the Court

on respondent’s Motion To Dismiss For Lack Of Jurisdiction And To

Strike, as supplemented.    Respondent moves to dismiss and strike

as to the taxable years 1991 and 1992 on the ground that

petitioner was not issued a notice of determination concerning

collection action(s) for those years.    As explained below, we
                              - 2 -

shall grant respondent’s motion, as supplemented.

Background

     On January 20, 1996, respondent served the City of

Philadelphia with a Notice of Levy on Wages, Salary, and Other

Income in an effort to collect taxes due from Janice Bullock

(petitioner) for 1991 and 1992.    On May 15, 1996, respondent

served Corestates Bank with a Notice of Levy in a further effort

to collect taxes due from petitioner for 1991 and 1992.      On April

3, 1997, respondent issued to petitioner a Final Notice–-Notice

of Intent to Levy regarding her unpaid taxes for 1991 and 1992.

On April 24, 2000, respondent issued to petitioner a notice that

respondent had applied $1,027.79 of taxes that she overpaid on

her Federal income tax return for 1999 to taxes remaining due for

the taxable years 1992 and 1993.

     On November 29, 2000, respondent issued to petitioner a

Final Notice–-Notice of Intent to Levy and Notice of Your Right

to a Hearing with regard to her unpaid taxes for the taxable

years 1993, 1994, 1995, and 1996.    On December 26, 2000,

petitioner filed with respondent a Form 12153, Request for a

Collection Due Process Hearing.    Petitioner subsequently attended

an administrative hearing at respondent’s Appeals Office in

Philadelphia, Pennsylvania.

     On February 19, 2002, respondent sent to petitioner by

certified mail a Notice Of Determination Concerning Collection
                               - 3 -

Action(s) Under Section 6320 and/or 6330.1   On March 28, 2002,

the Court received and filed a Petition for Lien or Levy Action

Under Code Sections 6320(c) or 6330(d).2   The petition lists the

years in dispute as 1991 through 1996.

     As indicated, respondent moved to dismiss for lack of

jurisdiction and to strike as to the taxable years 1991 and 1992.

Respondent contends that the Court lacks jurisdiction with regard

to 1991 and 1992 on the ground that respondent has not issued to

petitioner a notice of determination with regard to those years.

Respondent avers that the notice of determination dated February

19, 2002, on which the petition is based, pertains only to the

taxable years 1993 through 1996.   Petitioner filed an objection

to respondent’s motion, attaching to her objection copies of the

notices of levy for 1991 and 1992 that respondent served on the

City of Philadelphia and Corestates Bank (described above).

     This matter was called for hearing at the Court’s motions

session held in Washington, D.C.   Counsel for respondent appeared

at the hearing and offered argument in support of the motion to

dismiss.   There was no appearance by or on behalf of petitioner.

Following the hearing, respondent filed a supplement to his



     1
        Unless otherwise indicated, all section references are to
the Internal Revenue Code, as amended.
     2
        The petition arrived at the Court in a properly addressed
envelope bearing a timely U.S. Postal Service postmark date of
Mar. 19, 2002.
                                - 4 -

motion.   Petitioner failed to file a response to respondent’s

supplement as directed by the Court.

Discussion

     The Tax Court is a court of limited jurisdiction, and we may

exercise our jurisdiction only to the extent authorized by

Congress.    Naftel v. Commissioner, 85 T.C. 527, 529 (1985).

The Court’s jurisdiction to review collection actions under

sections 6320 (liens) and 6330 (levies) depends on the issuance

of a notice of determination and the filing of a timely petition

for review.    See Sarrell v. Commissioner, 117 T.C. 122, 125

(2001); Offiler v. Commissioner, 114 T.C. 492, 498 (2000).

     Section 6330 generally provides that the Commissioner cannot

proceed with the collection of taxes by levy on a taxpayer's

property until the taxpayer has been given notice of and the

opportunity for an administrative review of the matter (in the

form of an Appeals Office hearing), and if dissatisfied, with

judicial review of the administrative determination in the Tax

Court or Federal District Court, as appropriate.   Section 6330 is

effective with respect to collection actions initiated more than

180 days after July 22, 1998; i.e., January 19, 1999.   See

Internal Revenue Service Restructuring and Reform Act of 1998

(RRA 1998), Pub. L. 105-206, sec. 3401(d), 112 Stat. 685, 750.

     The record in this case shows that, in 1996, respondent

served notices of levy on the City of Philadelphia and Corestates
                               - 5 -

Bank with regard to petitioner’s unpaid taxes for 1991 and 1992.

Inasmuch as these collection actions were initiated well before

the effective date of RRA 1998, it follows that we do not have

jurisdiction to review those matters in this proceeding.

     The record also shows that, on April 24, 2000, respondent

applied petitioner’s overpayment for 1999 to offset petitioner’s

unpaid taxes for 1992 and 1993.   Although respondent initiated

the offset after the effective date of RRA 1998, respondent’s

application of a taxpayer’s overpayment for one taxable year to

offset the taxpayer’s liability for another taxable year does not

constitute a collection action that is subject to review under

sections 6320 or 6330.   In particular, the Commissioner’s

authority to credit an overpayment to offset any taxpayer’s

liability is set forth in section 6402.   An offset under section

6402 is distinguishable from, and does not constitute, a levy

action.   See Belloff v. Commissioner, 996 F.2d 607, 615-616 (2d

Cir. 1993) (comparing a levy with a “setoff”); Karara v. United

States, 90 AFTR 2d 2002-6264, 2002-2 USTC par. 50,667 (M.D. Fla.

2002) (holding that the Commissioner’s partial offset of the

taxpayer’s liability for 1993 by crediting the taxpayer’s $300

refund for 2000 did not violate section 6330(e)(1), which bars

the Commissioner from issuing a levy while collection review

proceedings are pending); Trent v. Commissioner, T.C. Memo. 2002-

285 (holding that the Commissioner’s offset of the taxpayer’s
                                 - 6 -

liability for one year by crediting refunds from other years did

not violate section 6015(e)(1)(B), which bars levy actions while

a taxpayer’s claim for relief from joint and several liability on

a joint return is pending); sec. 301.6330-1(g)(2), Q&A-G3,

Proced. & Admin. Regs.

     In sum, we shall grant respondent’s motion to dismiss and to

strike, as supplemented, inasmuch as respondent has not issued a

notice of determination to petitioner with regard to any

collection action for either 1991 or 1992.

     To reflect the foregoing,



                                 An order will be issued granting

                         respondent’s motion to dismiss for

                         lack of jurisdiction and to strike, as

                         supplemented.
