§ 7426.
(b)
Adjudication
The district court shall have jurisdiction to grant only such of the following forms of relief as may be appropriate in the circumstances:
(2)
Recovery of property
If the court determines that such property has been wrongfully levied upon, the court may—
(A)
order the return of specific property if the United States is in possession of such property;
(B)
grant a judgment for the amount of money levied upon; or
(C)
if such property was sold, grant a judgment for an amount not exceeding the greater of—
(i)
the amount received by the United States from the sale of such property, or
(ii)
the fair market value of such property immediately before the levy.
For the purposes of subparagraph (C), if the property was declared purchased by the United States at a sale pursuant to section 6335(e) (relating to manner and conditions of sale), the United States shall be treated as having received an amount equal to the minimum price determined pursuant to such section or (if larger) the amount received by the United States from the resale of such property.
(4)
Substituted sale proceeds
(5)
Substitution of value
(g)
Interest
Interest shall be allowed at the overpayment rate established under section 6621—
(1)
in the case of a judgment pursuant to subsection (b)(2)(B), from the date the Secretary receives the money wrongfully levied upon to the date of payment of such judgment;
(2)
in the case of a judgment pursuant to subsection (b)(2)(C), from the date of the sale of the property wrongfully levied upon to the date of payment of such judgment; and
(3)
in the case of a judgment pursuant to subsection (b)(5) which orders a refund of any amount, from the date the Secretary received such amount to the date of payment of such judgment.
(h)
Recovery of damages permitted in certain cases
(1)
In general
Notwithstanding subsection (b), if, in any action brought under this section, there is a finding that any officer or employee of the Internal Revenue Service recklessly or intentionally, or by reason of negligence, disregarded any provision of this title 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—
(A)
actual, direct economic damages sustained by the plaintiff as a proximate result of the reckless or intentional or negligent disregard of any provision of this title by the officer or employee (reduced by any amount of such damages awarded under subsection (b)); and
(B)
the costs of the action.
(2)
Requirement that administrative remedies be exhausted; mitigation; period
(Added [Pub. L. 89–719, title I, § 110(a)], Nov. 2, 1966, [80 Stat. 1142]; amended [Pub. L. 93–625, § 7(a)(2)(E)], Jan. 3, 1975, [88 Stat. 2115]; [Pub. L. 94–455, title XIX, § 1906(b)(13)(A)], Oct. 4, 1976, [90 Stat. 1834]; [Pub. L. 97–248, title III, § 350(a)], Sept. 3, 1982, [96 Stat. 639]; [Pub. L. 99–514, title XV, § 1511(c)(16)], Oct. 22, 1986, [100 Stat. 2745]; [Pub. L. 105–206, title III], §§ 3102(b), 3106(b)(1), (2), July 22, 1998, [112 Stat. 730], 733.)