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tax liability on Form 4868 when he filed for the automatic
extension, and thus such extension is invalid.
One of the requirements for the automatic extension of time to
file an individual tax return is the proper estimation of the final
tax liability for the taxable year. Sec. 1.6081-4(a)(4), Income
Tax Regs. The failure to estimate properly the final tax liability
on Form 4868 can invalidate the automatic extension and subject the
taxpayer to an addition to tax pursuant to section 6651(a)(1) for
failure to timely file the return. Crocker v. Commissioner, 92
T.C. 899 (1989); see also Berlin v. Commissioner, 59 F.2d 996 (2d
Cir. 1932), affg. a Memorandum Opinion of this Court.
To establish a proper estimate of the tax liability for
purposes of the automatic extension, the taxpayer must make "a bona
fide and reasonable estimate of his tax liability based on the
information available to him at the time he makes his request for
extension." Crocker v. Commissioner, supra at 908. The taxpayer
must determine his tax liability generally, but carefully. Id.
Further, the taxpayer must make a bona fide and reasonable attempt
to locate, gather, and consult information that will enable him to
make a proper estimate of his tax liability. Id.
Petitioner testified that he acted reasonably in estimating
his tax liability and utilized the information he had available to
him. According to petitioner's request for a second extension of
time to file his 1991 return, he was waiting for records from
Heidelberg & Woodliff that were necessary to prepare the return.
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