110 STAT. 1470
PUBLIC LAW 104-168-^ULY 30, 1996
(10) Section 6050J(e).
(11) Section 6050K(b)(l).
(12) Section 6050N(b)(l).
26 USC 6041
(b) EFFECTIVE DATE. —The amendments made by subsection
i^ote.
(a) shall apply to statements required to be fiimished after December 31, 1996 (determined without regard to any extension).
26 USC 6311
SEC. 1202. REQUIRED NOTICE OF CERTAIN PAYMENTS.
If any payment is received by the Secretary of the Treasury
or his delegate from any taxpayer and the Secretary cannot associate such payment with such taxpayer, the Secretary shall make
reasonable efforts to notify the taxpayer of such inability within
60 days after the receipt of such pa5anent.
SEC. 1203. UNAUTHORIZED ENTICEMENT OF INFORMATION DISCLO-
SURE.
(a) IN GENERAL.— Subchapter B of chapter 76 (relating to
proceedings by taxpayers and third parties), as amended by section
601(a), is amended by redesignating section 7435 as section 7436
and by inserting after section 7434 the following new section:
"SEC. 7435. CIVIL DAMAGES FOR UNAUTHORIZED ENTICEMENT OF
INFORMATION DISCLOSURE.
"(a) IN GENERAL.—I f any officer or employee of the United
States intentionally compromises the determination or collection
of any tax due from an attorney, certified public accountant, or
enrolled agent representing a taxpayer in exchange for information
conveyed by the taxpayer to the attorney, certified public accountant, or enrolled agent for purposes of obtaining advice concerning
the taxpayer's tax liabiHty, such taxpayer may bring a civil action
for damages against the United States in a district court of the
United States. Such civil action shall be the exclusive remedy
for recovering damages resulting from such actions.
"(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
lesser of $500,000 or the sum of—
"(1) actual, direct economic damages sustained by the plaintiff as a proximate result of the information disclosure, and
"(2) the costs of the action.
Damages shall not include the taxpayer's liability for any civil
or criminal penalties, or other losses attributable to incarceration
or the imposition of other criminal sanctions.
"(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) 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 actions
creating such liability would have been discovered by exercise of
reasonable care.
"(e) MANDATORY STAY.—Upon a certification by the Commissioner or the Commissioner's delegate that there is an ongoing
investigation or prosecution of the taxpayer, the district court before
which an action under this section is pending shall stay all proceedings with respect to such action pending the conclusion of the
investigation or prosecution.
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