Internal Revenue Code · 26 U.S.C.

§ 7434. Civil damages for fraudulent filing of information returns

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 7434

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Added: July 30, 1996 by Pub. L. 104–168
Last amended: July 22, 1998 by Pub. L. 105–206
Amendments: 1 dated changes in the source credit
Length: 6 subsections · 330 words · about 1 min to read
Defines: 1 term
Cross-references: cites 1; cited by 0 Code sections and 0 other regulations

¶(a) In general

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.

¶(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

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 6724(d)(1)(A).

(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.)

Terms defined here

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information return § 7434(f)

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 1 other section

§ 6724(d)(1)(A) Waiver; definitions and special rules

Amendment history

From the source credit and the official notes, newest first.

July 22, 1998Amended by Pub. L. 105–206Parts changed in 1998: (b)(3)
July 30, 1996Added by Pub. L. 104–168

Where it sits in the Code

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Official notes

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Editorial Notes

Prior Provisions

A prior section 7434 was renumbered 7437 of this title.

Amendments

1998—Subsec. (b)(3). Pub. L. 105–206 substituted “attorneys’ fees” for “attorneys fees”.

Effective Date

Pub. L. 104–168, title VI, § 601(c), July 30, 1996, 110 Stat. 1462, provided that: “The amendments made by this section [enacting this section and renumbering former section 7434 as 7435 of this title] shall apply to fraudulent information returns filed after the date of the enactment of this Act [July 30, 1996].”