No. If you want to challenge the citation and take it to federal court, the ranger who cited you could merely testify that it was green. It would, of course, be helpful for your defense if you had the tree or at least had photos to rebut the ranger's testimony. You could also try and contact the US Attorney assigned and strike a deal or even get him or her to dismiss the case in light of your evidence.
I'm not a tax lawyer, but common sense would say that you're not going to be able to claim what you had to repay in subrogation as a deduction. Subrogation merely represents a claim that your insurer had to any settlement proceeds from a third party. It is not a debt that you owed although it may feel like it.
Need more information. Is the health insurance through an employer? Is it an ERISA covered plan? If not, Indiana's lien reduction statute could certainly help you out. However, without more information I can't answer the question. I will note, however, that the facts of the case no matter how much they pull at the heart have no influence over whether an insurer can subrogate or not. That can change in made-whole states, but other than making a compelling story, it doesn't affect how the...