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26 U.S.C. § 7433 — Civil damages for certain unauthorized collection actions

Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 7433 — Civil damages for certain unauthorized collection actions

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Stable record: federal_law:legal_authorities:record_usc_8d75a8608db5867f0febb34a
Source file: Laws/federal/codes/united-states-code/title-26/section-7433-civil-damages-for-certain-unauthorized-collection-actions--574c628dbf.md
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Source location: Title 26, Chapter 76, § 7433; chapter-076-judicial-proceedings.md

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**(a) In general** If, in connection with any collection of Federal tax with respect to a taxpayer, any officer or employee of the Internal Revenue Service recklessly or intentionally, or by reason of negligence, disregards any provision of this title, or any regulation promulgated under this title, such taxpayer may bring a civil action for damages against the United States in a district court of the United States. Except as provided in section 7432, such civil action shall be the exclusive remedy for recovering damages resulting from such actions. **(b) Damages** In any action brought under subsection (a) or petition filed under subsection (e), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the lesser of $1,000,000 ($100,000, in the case of negligence) or the sum of— (1) actual, direct economic damages sustained by the plaintiff as a proximate result of the reckless or intentional or negligent actions of the officer or employee, and (2) the costs of the action. **(c) Payment authority** Claims pursuant to this section shall be payable out of funds appropriated under [section 1304 of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section1304&num=0&edition=prelim), United States Code. **(d) Limitations** (1) **Requirement that administrative remedies be exhausted** — A judgment for damages shall not be awarded under subsection (b) unless the court determines that the plaintiff has exhausted the administrative remedies available to such plaintiff within the Internal Revenue Service. (2) **Mitigation of damages** — The amount of damages awarded under subsection (b)(1) shall be reduced by the amount of such damages which could have reasonably been mitigated by the plaintiff. (3) **Period for bringing action** — Notwithstanding any other provision of law, an action to enforce liability created under this section may be brought without regard to the amount in controversy and may be brought only within 2 years after the date the right of action accrues. **(e) Actions for violations of certain bankruptcy procedures** (1) **In general** — If, in connection with any collection of Federal tax with respect to a taxpayer, any officer or employee of the Internal Revenue Service willfully violates any provision of section 362 (relating to automatic stay) or 524 (relating to effect of discharge) of title 11, United States Code (or any successor provision), or any regulation promulgated under such provision, such taxpayer may petition the bankruptcy court to recover damages against the United States. (2) **Remedy to be exclusive** (A) *In general* — Except as provided in subparagraph (B), notwithstanding section 105 of such title 11, such petition shall be the exclusive remedy for recovering damages resulting from such actions. (B) *Certain other actions permitted* — Subparagraph (A) shall not apply to an action under section 362(h) of such title 11 for a violation of a stay provided by section 362 of such title; except that— (i) administrative and litigation costs in connection with such an action may only be awarded under section 7430; and (ii) administrative costs may be awarded only if incurred on or after the date that the bankruptcy petition is filed.

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 7426 — Civil actions by persons other than taxpayers

**(a) Actions permitted** (1) **Wrongful levy** — If a levy has been made on property or property has been sold pursuant to a levy, any person (other than the person against whom is assessed the tax out of which such levy arose) who claims an interest in or lien on such property and that such property was wrongfully levied upon may bring a civil action against the United States in a district court of the United States. Such action may be brought without regard to whether such property has been surrendered to or sold by the Secretary. (2) **Surplus proceeds** — If property has been sold pursuant to a levy, any person (other than the person against whom is assessed the tax out of which such levy arose) who claims an interest in or lien on such property junior to that of the United States and to be legally entitled to the surplus proceeds of such sale may bring a civil action against the United States in a district court of the United States. (3) **Substituted sale proceeds** — If property has been sold pursuant to an agreement described in section 6325(b)(3) (relating to substitution of proceeds of sale), any person who claims to be legally entitled to all or any part of the amount held as a fund pursuant to such agreement may bring a civil action against the United States in a district court of the United States. (4) **Substitution of value** — If a certificate of discharge is issued to any person under section 6325(b)(4) with respect to any property, such person may, within 120 days after the day on which such certificate is issued, bring a civil action against the United States in a district court of the United States for a determination of whether the value of the interest of the United States (if any) in such property is less than the value determined by the Secr

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 7426

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Federal law — U.S. Code and appendices · legal_authorities

31 U.S.C. § 1304 — Judgments, awards, and compromise settlements

**(a)** Necessary amounts are appropriated to pay final judgments, awards, compromise settlements, and interest and costs specified in the judgments or otherwise authorized by law when— (1) payment is not otherwise provided for; (2) payment is certified by the Secretary of the Treasury; and (3) the judgment, award, or settlement is payable— (A) under section 2414, 2517, 2672, or 2677 of title 28; (B) under [section 3723 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3723&num=0&edition=prelim); (C) under a decision of a board of contract appeals; or (D) in excess of an amount payable from the appropriations of an agency for a meritorious claim under section 2733, 2733a, or 2734 of title 10, [section 715 of title 32](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title32-section715&num=0&edition=prelim), or [section 20113 of title 51](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title51-section20113&num=0&edition=prelim). **(b)** (1) Interest may be paid from the appropriation made by this section— (A) on a judgment of a district court, only when the judgment becomes final after review on appeal or petition by the United States Government, and then only from the date of filing of the transcript of the judgment with the Secretary of the Treasury through the day before the date of the mandate of affirmance; or (B) on a judgment of the Court of Appeals for the Federal Circuit or the United States Court of Federal Claims under [section 2516(b) of title 28](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title28-section2516/b&num=0&edition=prelim), only from the date of filing of the transcript of the judgment with the Secretary of the Treasury through the day before t

Source: Supplied U.S. Code snapshot — release unconfirmed · 31 U.S.C. § 1304

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 6673 — Sanctions and costs awarded by courts

**(a) Tax court proceedings** (1) **Procedures instituted primarily for delay, etc.** — Whenever it appears to the Tax Court that— (A) proceedings before it have been instituted or maintained by the taxpayer primarily for delay, (B) the taxpayer’s position in such proceeding is frivolous or groundless, or (C) the taxpayer unreasonably failed to pursue available administrative remedies, the Tax Court, in its decision, may require the taxpayer to pay to the United States a penalty not in excess of $25,000. (2) **Counsel’s liability for excessive costs** — Whenever it appears to the Tax Court that any attorney or other person admitted to practice before the Tax Court has multiplied the proceedings in any case unreasonably and vexatiously, the Tax Court may require— (A) that such attorney or other person pay personally the excess costs, expenses, and attorneys’ fees reasonably incurred because of such conduct, or (B) if such attorney is appearing on behalf of the Commissioner of Internal Revenue, that the United States pay such excess costs, expenses, and attorneys’ fees in the same manner as such an award by a district court. **(b) Proceedings in other courts** (1) **Claims under section 7433** — Whenever it appears to the court that the taxpayer’s position in the proceedings before the court instituted or maintained by such taxpayer under section 7433 is frivolous or groundless, the court may require the taxpayer to pay to the United States a penalty not in excess of $10,000. (2) **Collection of sanctions and costs** — In any civil proceeding before any court (other than the Tax Court) which is brought by or against the United States in connection with the determination, collection, or refund of any tax, interest, or penalty under this title, any mon

Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 6673

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 7433 — Civil damages for certain unauthorized

Page 3895 TITLE 26—INTERNAL REVENUE CODE § 7433 Subsec. (c)(1). Pub. L. 105–35, § 3(d)(1), (2), inserted ‘‘inspection or’’ before ‘‘disclosure’’ in subpars. (A) and (B)(i) and substituted ‘‘willful inspection or disclosure or an inspection or disclosure’’ for ‘‘willful disclosure or a disclosure’’ in subpar. (B)(ii). Subsec. (d). Pub. L. 105–35, § 3(d)(1), inserted ‘‘inspec- tion or’’ before ‘‘disclosure’’. Subsec. (e). Pub. L. 105–35, § 3(b), added subsec. (e). Former subsec. (e) redesignated (f). Subsec. (f). Pub. L. 105–35, § 3(b), (d)(3), redesignated subsec. (e) as (f) and amended it generally. Prior to amendment, subsec. (f) read as follows: ‘‘(f) RETURN; RETURN INFORMATION.—For purposes of this section, the terms ‘return’ and ‘return informa- tion’ have the respective meanings given such terms in section 6103(b).’’ Subsec. (g). Pub. L. 105–35, § 3(b), (d)(6), redesignated subsec. (f) as (g) and substituted ‘‘any inspection or use’’ for ‘‘any use’’ in par. (2). Pub. L. 105–34, § 1205(c)(2), added subsec. (g) relating to special rule for information obtained under section 6103(k)(8). 1983—Subsec. (f). Pub. L. 98–67 added subsec. (f). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–25, title III, § 3002(b), July 1, 2019, 133 Stat. 1015, provided that: ‘‘The amendment made by this sec- tion [amending this section] shall apply to determina- tions proposed after the date which is 180 days after the date of the enactment of this Act [July 1, 2019].’’ EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–280 effective Aug. 17, 2006, but not applicable to requests made before such date, see section 1224(c) of Pub. L. 109–280, set out as a note under section 6103 of this title. EFFECTIVE DATE OF 1998 AME

Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 7433

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