§ 7434. Civil damages for fraudulent filing of information returns

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. 1996

   Taxpayer Bill of Rights 2

   Pub. L. 104–168 title VI § 601(a) · 110 Stat. 1452

   Enacted · 26 U.S.C. § 7434

   Added Pub. L. 104–168, title VI, § 601(a), July 30, 1996, 110 Stat. 1462

   Source evidence

   Code source credit
   Added Pub. L. 104–168, title VI, § 601(a), July 30, 1996, 110 Stat. 1462

   Enacted provision · exact public law section
   (a) General Rule.— Subchapter B of chapter 76 (relating to proceedings by taxpayers and third parties) is amended by redesignating section 7434 as section 7435 and by inserting after section 7433 the following new section: “Sec. 7434. CIVIL DAMAGES FOR FRAUDULENT FILING OF INFORMATION RETURNS. “(a) In general.— If any person willfully files a fraudulent information return with respect to pa3anents purported to be made to any other person, such other person may bring a civil action for damages against the person so filing such return. “(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 greater of $5,000 or the sum of— “(1) any actual damages sustained by the plaintiff as a proximate result of the filing of the fraudulent information return (including any costs attributable to resolving deficiencies asserted as a result of such filing), “(2) the costs of the action, and “(3) in the court’s discretion, reasonable attorneys fees. “(c) Period for Bringing Action.— Notwithstanding any other provision of law, an action to enforce the liability created under this section may be brought without regard to the amount in controversy and may be brought only within the later of— “(1) 6 years after the date of the filing of the fraudulent information return, or “(2) 1 year after the date such fraudulent information return would have been discovered by exercise of reasonable care. “(d) COPY OF COMPLAINT FILED WITH IRS.— Any person bringing in action under subsection (a) shall provide a copy of the complaint to the Internal Revenue Service upon the filing of such complaint with the court. “(e) Finding of Court to Include Correct Amount of Payment.— the decision of the court awarding damages in an action brought under subsection (a) shall include a finding of the correct amount which should have been reported in the information return. “(f) Information Return.— for purposes of this section, the term ‘information return’ means any statement described in section 6724(d)(1)(A).”.

2. 1998

   Internal Revenue Service Restructuring and Reform Act of 1998

   Pub. L. 105–206 title VI § 6023(29) · 112 Stat. 685

   Substituted · 26 U.S.C. § 7434(b)(3)

   Pub. L. 105–206 substituted “attorneys’ fees” for “attorneys fees”

   Source evidence

   Code amendment note
   Subsec. (b)(3). Pub. L. 105–206 substituted “attorneys’ fees” for “attorneys fees”.

   Enacted provision · exact public law section
   (29) Paragraph (3) of section 7434(b) of the 1986 Code is amended by striking “attorneys fees” and inserting “attorneys’ fees”.

2 of 2 references resolved to an enrolled provision