In Re Music Merchandisers, Inc.

MEMORANDUM

KEITH M. LUNDIN, Bankruptcy Judge.

The question presented is whether the Chapter 7 trustee is entitled to a commission on funds “deemed” disbursed in a settlement with a claim holder. 11 U.S.C. § 326 does not allow the trustee a fee. The following are findings of fact and conclusions of law. Bankr.R. 7052.

I

There are two controversies between the Internal Revenue Service and the Chapter 7 trustee. The trustee sued the IRS to recover a fraudulent conveyance. The trustee claims that the debtor corporation paid $348,825.79 to the IRS for personal income taxes of the debtor’s president…