11
Section 6072 provides that a return for an individual on the
calendar year basis must be filed by April 15 following the close
of the calendar year. Section 7503 then provides that if April
15 falls on a Saturday, Sunday, or legal holiday, the due date
will be the next day not a Saturday, Sunday, or legal holiday.
The due date for petitioners' 1988 return was on April 15, 1989,
except that such date was a Saturday. Therefore, under section
7503, the due date for petitioners' income tax return was April
17, 1989. As we have detailed above, all the transfers to
petitioner husband, the exchanger, in this transaction happened
after April 17, 1989: the earliest on April 25, 1989, and the
latest on June 20, 1989. Such transfer dates fall outside the
exchange period provided for by the statute, section
1031(a)(3)(B)(ii).
Petitioners nevertheless urge that respondent's argument is
just a quibble, that even though petitioners' joint return was
due on April 17, 1989, and in fact was filed on that date,
petitioners nevertheless were entitled to an automatic 4-month
extension of time for the year 1988, which would extend the due
date for the return from April 17, 1989, to August 17, 1989, and
that since they were automatically entitled to such an extension,
the permissible period within which a tax-free exchange could be
made should be extended by that period.
We must reject petitioners' argument. The fact is that
petitioners' joint return was filed on April 17, 1989, its due
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