Justice Manual § 6-5.480

The Internal Revenue Code provides specific causes of action against the United States to recover damages where the IRS allegedly has engaged in collection practices that contravene or fail to meet statutory or regulatory standards. First, a taxpayer who alleges that an IRS employee has negligently, recklessly, or intentionally disregarded any provision of the Internal Revenue Code or the applicable regulations may file suit against the United States to recover economic damages. See 26 U.S.C. § 7433. Second, for wrongful failure to release a federal tax lien, a taxpayer may also file a damage suit against the United States. See 26 U.S.C. § 7432.

In addition, non-taxpayers who allege the IRS wrongfully levied their property may file an action against the United States. See 26 U.S.C. § 7426(a).

When a plaintiff serves the United States Attorney’s Office with a complaint citing any of these statutes or asserting such claims, the United States Attorney’s Office should immediately notify both the Chief of the appropriate Civil Trial Section and the appropriate IRS counsel.

Taxpayers may contest the filing of a Notice of Federal Tax Lien or a levy under 26 U.S.C. §§ 6320 or 6330 only by filing suit in the United States Tax Court. See 26 U.S.C. § 6330(d). Accordingly, the United States Attorney’s Office should immediately notify the appropriate IRS counsel if served with such a complaint filed in district court.