- 23 - II. Addition to Tax In the notice of deficiency, respondent determined that petitioners were liable for additions to tax under section 6651(a) for failure to file tax returns for both 1990 and 1992. Respondent now concedes that petitioners are not liable for the addition to tax for 1992. Respondent agrees that the requests for extension for filing the 1990 return were timely filed and that petitioners’ 1990 return was filed within the time as provided in the requests for extension. However, respondent argues that the Form 4868, requesting an automatic extension of time to file, was invalid. We disagree. In order for a Form 4868 to be valid, the taxpayer must use available evidence of tax liability, and must attempt to locate evidence, to make a proper estimate.14 See Crocker v. Commissioner, 92 T.C. 899 (1989). The mere fact that the estimate is incorrect does not make the Form 4868 invalid. See id. at 906-907. However, “if a taxpayer, in his Form 4868 request for automatic extension, estimated his tax liability to be zero, even though he had, at the time he submitted the request, ample evidence discrediting the estimate, the Form 4868 would be invalid.” Id. at 908. 14 The Form 4868 itself warns of this limitation. It states: “If we later find that your estimate was not reasonable, the extension will be null and void.”Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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