§7432 — Civil damages for failure to release lien
15 cases·2 overruled·13 cited
Statute Text — 26 U.S.C. §7432
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.
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—
actual, direct economic damages sustained by the plaintiff which, but for the actions of the defendant, would not have been sustained, plus
the costs of the action.
Claims pursuant to this section shall be payable out of funds appropriated under section 1304 of title 31, United States Code.
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.
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.
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.
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.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §301.7432-1 Civil cause of action for failure to release a lien
- Treas. Reg. §Treas. Reg. §301.7432-1(a) In general.
- Treas. Reg. §Treas. Reg. §301.7432-1(b) Finding of satisfaction or unenforceability.
- Treas. Reg. §Treas. Reg. §301.7432-1(c) Actual, direct economic damages—(1) Definition.
- Treas. Reg. §Treas. Reg. §301.7432-1(d) Costs of the action.
- Treas. Reg. §Treas. Reg. §301.7432-1(e) §301.7432-1(e)
- Treas. Reg. §Treas. Reg. §301.7432-1(f) Procedures for an administrative claim—(1) Manner.
- Treas. Reg. §Treas. Reg. §301.7432-1(g) Notice of failure to release lien—An administrative claim under paragraph (f) of this section shall be considered a notice of failure to release a lien.
- Treas. Reg. §Treas. Reg. §301.7432-1(h) No action in federal district court for any sum in excess of the dollar amount sought in the administrative claim—No action for actual, direct economic damages under paragraph (a) of this section shall be instituted in federal district court for any sum in excess of the amount (already incurred and estimated) of the administrative claim filed under paragraph (f) of this section, except where the increased amount is based upon newly discovered evidence not reasonably discoverable at the time the
- Treas. Reg. §Treas. Reg. §301.7432-1(i) Period of limitations—(1) Time of filing.
- Treas. Reg. §Treas. Reg. §301.7432-1(j) Recovery of costs under section 7430—Reasonable litigation costs, including attorney's fees, not recoverable under this section may be recoverable under section 7430.
- Treas. Reg. §Treas. Reg. §301.7432-1(k) Effective date—This section applies with respect to civil actions under section 7432 filed in federal district court after January 30, 1992.
- Treas. Reg. §Treas. Reg. §301.7432-1(v) §301.7432-1(v)
15 Citing Cases
Following a conference call between the parties and the Court to discuss the pending Motions, the Court invited the parties to express their 8 The Beltons also sought civil damages under section 7432 based on an alleged failure by the IRS to release a lien under section 6325.
Section 7433(a) provides that a taxpayer may bring a civil action for damages against the United States for intentional, reckless, or negligent disregard ofany - 12 - provision ofthe Code or any regulation promulgated under the Code by any officer or employee ofthe IRS in connection with any collection ofFederal tax.
Section 7433(a) provides that a taxpayermay bring a civil action for damages against the United States for intentional, reckless, or negligent disregard ofany provision ofthe Code or any regulation promulgated under the Code by any officer or employee ofthe Internal Revenue Service in connection with any collection ofFederal ta
Section 7433(a) provides that (except as provided in section 7432) a civil action brought by a taxpayer against the United States "shall be the exclusive remedy for recovering damages resulting from" unauthorized collection actions.
If petitioners’ claim for monetary compensation were meant to be predicated on section 7432 and/or 7433, which provide for civil damages for failure to release a lien or certain unauthorized collection actions, respectively, we note that such claims must be brought in a District Court of the United States.