- 24 -
accountants "properly estimated" petitioners' tax liability
on the Forms 4868, Application for Automatic Extension of
Time to File U.S. Individual Income Tax Return, that were
filed for those years. See sec. 1.6081-4(a)(4), Income
Tax Regs. If petitioners' tax liability was not properly
estimated, then the extensions of time to file are invalid
and petitioners' returns are delinquent. Crocker v.
Commissioner, 92 T.C. 899, 910 (1989). In that event,
petitioners are liable for the addition to tax under
section 6651(a)(1), unless they establish that the failure
to file their returns by the date prescribed by law is due
to reasonable cause and not due to willful neglect. Id.
at 912-914.
Generally, individuals who compute their Federal
income tax on the basis of the calendar year are required
to file their return on or before April 15th following
the close of such year. Sec. 6072(a). The Secretary of
the Treasury or his delegate may grant a reasonable
extension of time for filing a return. Sec. 6081(a).
Regulations promulgated pursuant to that authority
state that individual taxpayers may obtain an automatic
4-month extension of time to file their return. Sec.
1.6081-4(a)(1), Income Tax Regs. In order to do so, the
taxpayer must prepare and sign a Form 4868, Application
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011