Opinion
CASE NO. 03-02156 (SEK).
November 1, 2007
OPINION AND ORDER
Before the Court is the P.R. Department of Treasury's ("Treasury"), "Motion for Reconsideration and Reply to Trustee's Objection to Proof of Claim 48". Treasury asks that we reconsider our order disallowing its proof of claim due to non-compliance with a prior Court order and the time lines set in 11 U.S.C. § 505(b). Thus, we review the request pursuant to 11 U.S.C. § 502(j), Fed.R.Bankr.P. Rules 3008 and 9024, and F.R.C.P. 60(b).
Relevant Facts
On April 20, 2006, the Trustee filed a motion under 11 U.S.C. § 505(b) for the prompt determination of post-petition taxes for the taxable years 2002, 2003 and 2004. Five days later, we ordered Treasury to assess the taxes for these years within thirty days. Treasury failed to comply with this order.
Eight months later, Treasury filed proof of claim #48 for taxes due from 2002 through 2004. The trustee objected the claim alleging the assessment of taxes was untimely and precluded by the provisions of 11 U.S.C. § 505. Treasury did not respond and, on September 25, 2007, we granted the trustee's objection. Treasury then filed a motion for reconsideration under 11 U.S.C. § 502(j), Bankruptcy Rules 3008 and 9024, and F.R.C.P. 60(b) on October 5, 2007, stating: "some human mistake" prevented the agency from following the proper procedures, and its motion was submitted in reply to trustee's objection to proof of claim #48.
Discussion
11 U.S.C. § 502(j), Bankruptcy Rule 3008, and Federal Rule of Civil Procedure 60(b), applicable in bankruptcy through Bankruptcy Rule 9024, provide for the reconsideration of an order of allowance or disallowance of a claim. The request should specify the facts that support the remedy. 4 Collier on Bankruptcy § 502.11[5][a] (15th ed. Rev.)
When claiming mistake or inadvertence, a party has to provide some showing to justify their plight. 1 Charles Alan Wright, Arthur R, Miller Mary Kay Kane, Federal Practice and Procedures § 2858 (2d. Ed. 1995).
Here, Treasury claims its failure to respond to trustee's objection was due to a human mistake. Without further explanation, we do not have sufficient information to evaluate the reasonableness of Treasury's excuse.
There is no question that Treasury failed to adhere to orders of the Court and comply with the time lines set in § 505(b). For eight months Treasury did nothing with respect to its claim for unpaid taxes. Thus, under § 505(b) this debt is discharged.