26 USC 7433 – A terrible remedy and a non-solution for IRS employee lawlessness
The following laws (providing immunity) give the United States the power to police itself. In the following cases, the laws completely undo consequences for intentional violations of the law by IRS personnel when the government benefits. This is not accidental. The federal government chooses when to violate the law and then tells its employees that they will not be held accountable when they are caught breaking the law.
26 USC § 7433 and § 7432 are Internal Revenue Code statutes that exacerbate the very problem they are ostensibly established to resolve. These statutes are a wolf in sheep’s clothing as a remedy for taxpayer grievances, because they are a completely unworkable deterrent solution for IRS employees’ intentional violations of the law.
By example, the relevant portion of statute 26 USC § 7433 states, that, …
(a) In general
If, in connection with any collection of Federal tax with respect to a taxpayer, any officer or employee of the Internal Revenue Service recklessly or intentionally, or by reason of negligence, disregards any provision of this title, or any regulation promulgated under this title [26 USC], such taxpayer may bring a civil action for damages against the United States in a district court of the United States. Except as provided in section 7432, such civil action shall be the exclusive remedy for recovering damages resulting from such actions.
In other words, if an IRS employee intentionally breaks IRS statutes, the aggrieved taxpayer may sue the United States in federal court using 26 USC 7433 (after you first attempt to resolve the dispute administratively). But, unfairly, you can’t ask for punitive damages against the employee to discourage future lawless behavior. If the IRS has decided to intentionally break the law in their collection efforts against you, you have no legal recourse to punish them in return for their intentionally oppressive lawlessness.
IRS employees understand this. IRS employees also know that few people challenge their unlawful acts in court. The inevitable end result is the emergence of a pattern of lawlessness by IRS employees. However, it turns out that taxpayers have a different remedy against IRS employees for a pattern of lawlessness. It’s called RICO (Racketeering Influenced Corrupt Organization). In this statute IRS employees are personally liable for their lawlessness. No one has yet successful sued IRS employees for RICO.
Our dispute with the IRS involves RICO allegations.