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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 7004 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). Respondent argues that petitioner failed to
estimate properly its tax liability on Form 7004 when it filed for
the automatic extension, and thus the extension is invalid.
We agree. Petitioner failed to report any tax liability on
its application. Putting aside petitioner's concessions,
petitioner reported a $52,180 tax liability on its tax return for
year ended June 30, 1991, despite the fact that it estimated "0" on
its application.
Moreover, petitioner has failed to present any evidence on
this issue (other than to contend that it is not liable for the
addition) and has accordingly failed to satisfy its burden of
proof. Clearly, petitioner has failed to show that it estimated
properly the final tax liability on Form 7004. See, e.g., Scott v.
Commissioner, T.C. Memo. 1997-507. Consequently, we sustain
respondent's determination.
Issue 3. Section 6662(a) Accuracy-Related Penalty
The final issue is whether petitioner is liable for the
section 6662(a) accuracy-related penalty. Section 6662 imposes an
accuracy-related penalty equal to 20 percent of any portion of an
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