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F. Whether Petitioners’ Forms 4868 Are Valid
1. Petitioners’ Contentions and Background
Petitioners contend that the Form 4868 request for automatic
4-month extension that they filed for 1998 is valid because they
took reasonable steps to report their income to Lewellen, he
inadvertently failed to include $135,422 in income for 1998, and
they corrected that error by filing an amended return for 1998
three weeks after they filed their original return.
A calendar year taxpayer generally must file returns by
April 15 after the close of the calendar year. Sec. 6072(a).
The Commissioner may grant a reasonable extension of time to file
a return. Sec. 6081(a). A 4-month extension is automatic if a
taxpayer timely files a properly prepared Form 4868. Sec.
1.6081-4(a)(1) and (2), Income Tax Regs.
A Form 4868 is invalid if the taxpayer fails to properly
estimate his or her tax liability based on information available
to the taxpayer when the extension is requested. Clayton v.
Commissioner, 102 T.C. 632, 650 (1994); Crocker v. Commissioner,
92 T.C. 899, 908, 911 (1989). A taxpayer must estimate his or
her tax liability carefully and must make a reasonable attempt to
find information on which to base the estimate. Crocker v.
Commissioner, supra. The mere fact that a taxpayer
underestimates his or her tax liability does not invalidate a
Form 4868 or void an automatic extension. Id. at 907.
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