In Re FM Transmix Corp.

DECISION AFTER EVIDENTIARY HEARING

(Motion to Reduce/Expunge Claim Number 36 Filed by the Internal Revenue Service)

MELANIE L. CYGANOWSKI, Bankruptcy Judge.

FM Transmix Corp. (“FM” or the “Debt- or”) filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code on July 26, 1995. On September 10, 1996, the Debt- or moved for an Order expunging or reducing claim number 36 filed by the United States Department of the Treasury, Internal Revenue Service (the “IRS”), which includes a $45,000 tax penalty 1 assessed against the Debtor pursuant to 26 U.S.C. § 6715 2 for the improper use…