B-146593, NOV. 29, 1961

B-146593, NOV. 29, 1961

TO ADELMAN AND LAVINE:

REFERENCE IS MADE TO YOUR LETTER DATED NOVEMBER 6, 1961, AND PRIOR CORRESPONDENCE WRITTEN IN BEHALF OF MORTON Q. KLEIN AS TRUSTEE IN BANKRUPTCY FOR DIETERLY BROTHERS, AND REQUESTING PAYMENT OF $4,982 EARNED BY DIETERLY BROTHERS UNDER CONTRACT NO. DA-28-013-AI-2241 PRIOR TO FILING OF THE PETITION IN BANKRUPTCY.

WE ARE NOW ADVISED BY THE INTERNAL REVENUE SERVICE THAT WITHHOLDING AND FICA TAX AND PENALTY ASSESSMENTS AGAINST DIETERLY BROTHERS FOR THE FOURTH QUARTER OF 1959 AND THE FIRST AND SECOND QUARTERS OF 1960, TOGETHER WITH INTEREST THEREON COMPUTED TO JUNE 17, 1960 TOTAL $4,910.91. FURTHER, TAX AND PENALTY ASSESSMENTS UNDER THE FEDERAL UNEMPLOYMENT TAX ACT FOR THE YEARS 1959 AND 1960, TOGETHER WITH INTEREST COMPUTED TO JUNE 17, 1960 TOTAL $948.98.

IN VIEW OF THE FACT THAT THIS INDEBTEDNESS TO THE GOVERNMENT ACCRUED PRIOR TO BANKRUPTCY, AND THE FULL INDEBTEDNESS EXCEEDS THE FULL AMOUNT OF THE UNPAID BALANCE UNDER CONTRACT NO. DA-28-013-AI-2241, IT WOULD APPEAR THAT ANY PORTION OF SUCH UNPAID BALANCE WHICH MIGHT OTHERWISE PROPERLY BE FOUND FOR PAYMENT TO THE TRUSTEE MUST BE APPLIED AGAINST THE TAX INDEBTEDNESS.

THE TRUSTEE'S CLAIM TO THE UNPAID BALANCE UNDER CONTRACT NO. DA-28 013-AI -2241 IS THEREFORE DENIED.