26 USC 7434 - Civil damages for fraudulent filing of information returns

U.S Code last checked for updates: Nov 22, 2024

§ 7434.

Civil damages for fraudulent filing of information returns

(a)

In general

(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

(e)

Finding of court to include correct amount of payment

(f)

Information return

(Added Pub. L. 104–168, title VI, § 601(a), July 30, 1996, 110 Stat. 1462; amended Pub. L. 105–206, title VI, § 6023(29), July 22, 1998, 112 Stat. 826.)

cite as: 26 USC 7434