Unlawful collection actions.

• Author: Laffie, Lesli S.
• Position: Regulations

Final regulations (TD 9050) discuss civil causes of action for damages caused by IRS officers' and employees' unlawful collection actions and the awarding of costs and certain fees.

The final regulations reflect amendments made by the Taxpayer Bill of Rights 2 (TBOR2) and the Internal Revenue Service Restructuring and Reform Act of 1998 (IRSRRA '98).

The TBOR2 amended Sec. 7433 by increasing the maximum damage award from $100,000 to $1 million in the case of "reckless" or "intentional" disregard of the Code or regulations. It also eliminated the jurisdictional requirement that administrative remedies be exhausted before a court could award damages.

The IRSRRA '98 amended Sec. 7433 by providing that a...