U.S. Code » Title 26 » Subtitle Subtitle F— Procedure and Administration › Chapter CHAPTER 76— JUDICIAL PROCEEDINGS › Subchapter Subchapter B— Proceedings by Taxpayers and Third Parties

26 U.S.C. § 7432

Civil damages for failure to release lien

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(a) In general

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.

(b) DamagesIn 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—(1) actual, direct economic damages sustained by the plaintiff which, but for the actions of the defendant, would not have been sustained, plus(2) the costs of the action.(c) Payment authority

Claims pursuant to this section shall be payable out of funds appropriated under section 1304 of title 31, United States Code.

(d) Limitations(1) Requirement that administrative remedies be exhausted

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.

(2) Mitigation of damages

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.

(3) Period for bringing action

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.

(e) Notice of failure to release lien

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.

(Added Pub. L. 100–647, title VI, § 6240(a), Nov. 10, 1988, 102 Stat. 3746.)Editorial NotesPrior Provisions

A prior section 7432 was renumbered 7437 of this title.

Statutory Notes and Related SubsidiariesEffective Date

Pub. L. 100–647, title VI, § 6240(c), Nov. 10, 1988, 102 Stat. 3747, provided that: “The amendments made by this section [enacting this section] shall apply to notices provided by the taxpayer of the failure to release a lien, and damages arising, after December 31, 1988.”

Notes of Decisions
Cited in 160 cases (25 in the last 5 years), 1989–2026 · leading case: Pollinger v. United States, 539 F. Supp. 2d 242 (D.D.C. 2008).
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Pollinger v. United States, 539 F. Supp. 2d 242 (D.D.C. 2008). · cites it 8× “§ 6212 (a) (Count VII); • Failing to release the Notice of Lien against Plaintiffs real property, in violation of 26 U.S.C. § 7432 (Count VIII); • Illegally simulating judicial process by issuing and recording a fraudulent Notice of Federal Tax Lien, in violation of 18 U.”
Info. Resources, Inc., a Corp. v. United States, 950 F.2d 1122 (5th Cir. 1992). · cites it 7× “Information Resources brought suit for damages for both the erroneous filing of the liens and the failure to issue a timely release of the liens pursuant to 26 U.S.C. §§ 7432 and 7433. The district court granted the government’s motion for summary judgment because Information…”
Pollinger v. Internal Revenue Serv. Oversight Bd., 362 F. App'x 5 (11th Cir. 2010). · cites it 13× “Government’s Motion for Summary Judgment The government also filed a motion for summary judgment, asserting that Pollinger was clearly seeking relief pursuant to 26 U.S.C. § 7432 allowing civil damages for the government’s failure to release a tax lien, not 26 U.”
Laukus v. United States, 691 F. Supp. 2d 119 (D.D.C. 2010). · cites it 3× “Claims for Damages for Failure to Release Lien Under 26 U.S.C. § 7432 Counts VIII and IX are brought under 26 U.”
David P. Venen v. United States, 38 F.3d 100 (3rd Cir. 1994). · cites it 3× “§ 7433 (Counts I, III and TV); failure to release a tax lien under 26 U.S.C. § 7432 (Counts II and V); and unauthorized disclosure of tax return information under 26 U.”
Bilzerian v. United States, 86 F.3d 1067 (11th Cir. 1996). · cites it 5× “PER CURIAM: Terri Steffen appeals the district court’s order granting summary judgment to the Internal Revenue Service (“IRS”) on her *1068 claim for damages under 26 U.S.C. § 7432 . We reverse and remand for a determination of damages, if any.”
Boritz v. United States, 685 F. Supp. 2d 113 (D.D.C. 2010). · cites it 4× “He primarily seeks relief pursuant to the Taxpayer Bill of Rights, 26 U.S.C. §§ 7432 and 7433, which permit a taxpayer to bring a suit for damages against the United States for failure to release a lien and for certain unauthorized collection actions, respectively.”
Charles William Ledford v. United States, 297 F.3d 1378 (Fed. Cir. 2002). “…governs damages for failure to release a tax lien, also provides solely for jurisdiction in the district courts. See 26 U.S.C. § 7432 (a) (2000).”
Gandy Nursery, Inc. v. United States, 318 F.3d 631 (5th Cir. 2003). · cites it 2× “In their second amended complaint, appellants sought: (1) abatement of the unpaid balance of penalty assessments for late filing of employment tax returns and late payment of employment tax; (2) refund of payments that had been credited toward the penalty assessments; (3)…”
Henry, Michael v. United States, 276 F. App'x 503 (7th Cir. 2008). · cites it 4× “In his amended complaint, Henry asserted that the United States, the DOJ, Murphy, the IRS, and an employee of the IRS, Debbie Arceneaux, conspired to “ignore the rulings of the Supreme Court” by “fabricating Deficiency Notices and attempting extortion.”
Raymond E. McMillen Jr. & Laura McMillen v. United States Dep't of Treasury, 960 F.2d 187 (1st Cir. 1991). · cites it 2× “The McMillens have also cited 26 U.S.C. § 7432 as a basis for jurisdiction in this case.”
Blueport Co., LLC v. United States, 533 F.3d 1374 (Fed. Cir. 2008). “2002) (holding that 26 U.S.C. § 7432 (a), which states “such taxpayer may bring a civil action for damages against the United States in a district court of the United States,” provides for jurisdiction in the district courts, not the CFC); LeBlanc v.”
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