Improper IRS Disclosure of Taxpayer Data under Section 6103: Recovering Punitive Damages Despite No Actual Damages.

 



Taxpayers always give heaps of confidential data to the IRS when they file their mandatory tax returns and information returns, and the IRS always has a legal duty to safeguard such data. Taxpayers sometimes become victims of improper disclosures, and the IRS sometimes gets punished for its transgressions. This article introduces key legal concepts, data-protection duties of the IRS, manners by which taxpayers can sue the IRS for breaches, and the potential for taxpayers to recover not only damages, but also costs incurred in fighting the IRS. This article then analyzes the most recent case, Castillo v. United States, which holds that taxpayers might be able to obtain punitive damages from the IRS, even when they do not suffer actual damages because of the IRS’s improper disclosure of confidential data.

 Read the full article here.

About Hale E. Sheppard
HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a Shareholder in the Tax Controversy Section of Chamberlain Hrdlicka and Chair of the International Tax Group.

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