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Hinz learned what Christy thought was the extended due date for
the tax return. Hinz had not asked Christy what the extended due
date was. By then, Hinz and Christy decided that they had little
choice but to use the probate referee’s figures. However,
Christy and Hinz thought those amounts were too high, so Christy
reduced the probate referee’s figures by 25 percent. See infra
table 2, line 1, for the values shown on the estate tax return.
At Christy’s suggestion, Hinz agreed to elect under section 6166
to pay the estate tax in installments. Christy prepared the
estate tax return and signed it as return preparer.
Hinz and Christy executed the estate tax return on February
1, 1994. Neither the returned Form 4768 nor a copy thereof was
attached to the tax return when Hinz signed it. Hinz first saw
the returned Form 4768 or a copy thereof at sometime after Hinz
executed the tax return. At the time the estate tax return was
filed, Christy and Hinz believed that this tax return was timely.
The estate tax return, showing a net estate tax and balance
due of $3,880,270.19, was filed on February 4, 1994, 21 months
after decedent’s death and 6 months after the August 4, 1993,
extended due date. This tax return includes an election under
section 6166 to pay the estate taxes in nine installments
starting May 4, 1997, with annual interest payments starting May
4, 1994.
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