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Respondent has agreed to correct this error. Petitioners did not
present any evidence that respondent assessed penalties for their
1998 and 1999 income tax liabilities while their bankruptcy
petition was pending. Further, a review of petitioners’ income
tax account transcripts for 1998 and 1999 confirms that
respondent did not assess any additional penalty during the
pendency of their bankruptcy.
With respect to the employment tax liabilities for Mr.
Salazar under docket No. 23547-06L, petitioners again argue that
additions to tax were sought for the period their bankruptcy was
pending. However, section 6658 does not prevent respondent from
assessing the additions to tax during the pendency of the
bankruptcy related to employment taxes to the extent that they
are withheld or collected from others. Sec. 6658(b); Kiesner v.
IRS, 194 Bankr. 452, 458 (Bankr. E.D. Wis. 1996); see also S.
Rept. 96-1035, at 51 (1980), 1980-2 C.B. 620, 646 (“These relief
rules do not, however, apply with respect to liability for
penalties for failure to timely pay or deposit any employment tax
required to be withheld by the debtor or trustee.”).
Accordingly, we find no basis to suggest that the employment tax
liabilities respondent seeks to collect include any erroneously
assessed additions to tax.
Petitioners also argue for abatement of interest on both
their income tax and employment tax liabilities. The
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