If any person willfully files a fraudulent information return with respect to payments 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.
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 an 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
A prior section
7434 was renumbered 7437 of this title.
1998—Subsec. (b)(3). Pub. L. 105–206substituted “attorneys’ fees” for “attorneys fees”.
Section 601(c) ofPub. L. 104–168provided that: “The amendments made by this section [enacting this section and renumbering former section
7435 of this title] shall apply to fraudulent information returns filed after the date of the enactment of this Act [July 30, 1996].”
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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Description of Change
Statutes at Large
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