UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF KENTUCKY

COVINGTON DIVISION

IN RE:

CHARLES E. PARKER CASE NO. 01-20790

DEBTOR

O R D E R

This matter is before the court on the Motion of creditor, Internal Revenue Service, to Alter or Amend the court=s order entered on August 28, 2001 which order disallows setoff by the IRS of a $566 refund due the debtor for taxes due for calendar year 2000 against an obligation of the debtor to the IRS in the amount of $597.39 for taxes due for calendar year 1993.

In its argument for reconsideration, the IRS has cited a recent Circuit Court of Appeals decision, In re: Luongo, 259 F.3d 323 (5^th Cir. 2001). The facts in that case are substantially the same as in the present case and the case is persuasive.

IT IS HEREBY ORDERED AS FOLLOWS:

1) That the Motion of the Internal Revenue Service filed herein on September 6, 2001, to Alter or Amend be, and the same hereby is, SUSTAINED.

2) That the Memorandum Opinion and Order entered by the court on August 28, 2001 be, and the same hereby is, SET ASIDE.

3) That the IRS is granted relief to setoff the income tax refund due to calendar year 2000 against the earlier debt to the IRS owed by the debtor as requested.

Dated this day of October, 2001.

BY THE COURT

JUDGE

COPIES TO:

David E. Middleton, Esq.

Virginia J. Southgate, Esq.

U.S. Trustee

Charles L.J. Freihofer, Esq.