§ 7432. Civil damages for failure to release lien

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1988

   Omnibus Taxpayer Bill of Rights

   Pub. L. 100–647 title VI § 6240(a) · 102 Stat. 3342

   Enacted · 26 U.S.C. § 7432

   (Added Pub. L. 100–647, title VI, § 6240(a), Nov. 10, 1988, 102 Stat. 3746.)

   Source evidence

   Code source credit
   (Added Pub. L. 100–647, title VI, § 6240(a), Nov. 10, 1988, 102 Stat. 3746.)

   Enacted provision · exact public law section
   (a) In General.— Subchapter B of chapter 76 of the 1986 Code (relating to proceedings by taxpayers and third parties) is amended by redesignating section 7432 as section 7433 and by inserting after section 7431 the following new section: “SEC. 7432. CIVIL DAMAGES FOR FAILURE TO RELEASE LIEN. “(a) In General.— If any officer or employee of the Internal Revenue Service knowingly, or by reason of negligence, fails to release a Gen 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 Regulations. 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.” “(b) Clerical Amendment.— The table of sections for subchapter B of chapter 76 of the 1986 Code is amended by striking out the item relating to section 7432 and inserting in lieu thereof the following new items: “Sec. 7432. Civil damages for failure to release lien. “Sec. 7433. Cross references.”

1 of 1 references resolved to an enrolled provision