Opinion
Case No. 01-09988-8P1.
March 26, 2004
ORDER GRANTING DEBTOR'S MOTION FOR RECONSIDERATION OF FINDINGS OF FACT, CONCLUSIONS OF LAW AND MEMORANDUM OPINION DATED JUNE 17, 2003
THIS CAUSE came before the Court for hearing on January 14, 2004, upon the Debtor's Motion For Reconsideration Of Findings Of Fact, Conclusions Of Law And Memorandum Opinion Dated June 17, 2003 (Docket #214). Both the Debtor and the Internal Revenue Service were represented by counsel. At the hearing, the Debtor submitted an Evidentiary and Case Law Appendix.
In her Motion for Reconsideration, the Debtor requests that this Court reconsider three aspects of its Order of June 17, 2003 (Docket #186). The issues that the Debtor requests the Court to reconsider are:
(a) whether the Debtor received an erroneous refund in 1991;
(b) whether the Debtor substantiated a 1993 bad debt deduction; and
(c) whether the Debtor substantiated a 1991 theft loss deduction.
The June 17, 2003 Order was entered following a trial conducted on March 27, 2003. The Court scheduled a further hearing on certain issues related to the 1991 refund issues for May 21, 2003, which was later rescheduled to May 29, 2003. The United States moved to cancel this hearing (Docket No. 149), which motion was denied (Docket No. 179). Pursuant to request of the Court, the Debtor and United States filed post-trial memoranda, although the Debtor's memorandum did not address the 1991 refund issue.
Prior to the continued hearing, the 1991 erroneous refund issue was settled and became the subject of a Motion to Approve Compromise (Docket #183). The erroneous refund claim for 1991 will be dealt with in connection with the Debtor's motion to approve a compromise of that matter.
With respect to the Debtor's deduction of a bad debt for the 1993 tax year in the amount of $124,162.00, this Court is persuaded by the Debtor's arguments, and her Motion for Reconsideration on that issue is well-founded and should be granted for the reasons set forth in open court and set forth in the Debtor's Motion for Reconsideration. See, e.g., In re Bicoastal Corp., 158 B.R. 240, 244 (Bankr. M.D.Fla. 1993); Trial Transcript, at 172-173. Consequently, the Debtor is allowed a deduction of $124,162 for the 1993 tax year.
Finally, the Court is also persuaded that the Debtor's Motion for Reconsideration on the Michelle Skeen theft loss is well-founded and should be granted for the reasons set forth in open Court and set forth in the Debtor's Motion for Reconsideration.
Accordingly, for the reasons set forth in open court and recorded on the record, which shall become the findings of fact and conclusions of law of this Court, it is
ORDERED, ADJUDGED AND DECREED that the Debtor's Motion for Reconsideration be, and the same hereby is, GRANTED as set forth below. It is further
ORDERED, ADJUDGED AND DECREED that this Court vacates the portion of its June 17, 2003 Order dealing with the 1991 erroneous refund. It is further
ORDERED, ADJUDGED AND DECREED that the Debtor's Motion for Reconsideration is granted with respect to the bad debt deduction for 1993 in the amount of $124,162, and her Objection to Claim Number 6 filed by the Internal Revenue Service is sustained as to that item. It is further
ORDERED, ADJUDGED AND DECREED that the Debtor's Motion for Reconsideration is granted with respect to the 1991 theft loss in the amount of $114,737 and the Debtor's Objection to Claim Number 6 filed by the Internal Revenue Service is sustained as to that item.
DONE AND ORDERED.