26-U.S.C.-7432
§7432 – Civil Damages For Failure to Release Lien
Pathway
Title 26 > Subtitle F > Chapter 76 > Subchapter B > Section 7432
Details
- Reference: Section 7432
- Legend: §7432 – Civil Damages For Failure to Release Lien
- USCode Year: 2013
Provision Content
(a) In general
If any officer or employee of the Internal Revenue Service knowingly, or by reason of negligence, fails to release a lien under section 6325 on property of the taxpayer, such taxpayer may bring a civil action for damages against the United States in a district court of the United States.
(b) Damages
In any action brought under subsection (a), 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 sum of—
(1) actual, direct economic damages sustained by the plaintiff which, but for the actions of the defendant, would not have been sustained, plus
(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, 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) Notice of failure to release lien
The Secretary shall by regulation prescribe reasonable procedures for a taxpayer to notify the Secretary of the failure to release a lien under section 6325 on property of the taxpayer.
(Added Pub. L. 100–647, title VI, §6240(a), Nov. 10, 1988, 102 Stat. 3746.)
Prior Provisions
A prior section 7432 was renumbered 7437 of this title.
Effective Date
Pub. L. 100–647, title VI, §6240(c), Nov. 10, 1988, 102 Stat. 3747, provided that: The amendments made by this section [enacting this section] shall apply to notices provided by the taxpayer of the failure to release a lien, and damages arising, after December 31, 1988.
U.S. Encyclopedia of Law Coverage
26-U.S.C.-7401 in the Legal Encyclopedia: Tax Administration
In this entry about 26-U.S.C.-7401, find legal reference material, bibliographies and premiere content related to tax administration in the American Encyclopedia of Law, presenting a comprehensive view of the United States tax administration-specific issues, written by authorities in the field.
26-U.S.C.-7430 in the Legal Encyclopedia: Judicial Proceedings
In this entry about 26-U.S.C.-7430, find legal reference material, bibliographies and premiere content related to judicial proceedings in the American Encyclopedia of Law, presenting a comprehensive view of the United States judicial proceedings-specific issues, written by authorities in the field.
Leave a Reply