In re We Care Community Economic Development Corp.

REASONS FOR ORDER

JERRY A. BROWN, Bankruptcy Judge.

This matter came before the court on May 27 and June 11,1997 as a hearing on: (1) the *566debtor’s motion to determine tax liability (PL 57); and (2) the debtor’s motion for rehearing of order denying motion to transfer funds deposited into the registry of the court to the debtor. (Pl. 53). At issue is whether the debtor should be relieved from paying interest and penalties on federal taxes owed.

I.Facts

1. Under contract with the State of Louisiana, the debtor operates-a residential rehabilitation facility for young persons. The Louisiana…