Title 26 — Internal Revenue CodeRelease 119-73
§7431 Civil damages for unauthorized inspection or disclosure of returns and return information
Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 76— - JUDICIAL PROCEEDINGS › Subchapter Subchapter B— - Proceedings by Taxpayers and Third Parties › § 7431
Summary
You can sue in federal court if a U.S. officer or employee, or another person, looks at or shares your tax return or tax return details in ways that break section 6103, either on purpose or through carelessness. You cannot get money if the person acted on a honest but wrong reading of section 6103 or if you asked for the disclosure. If the court finds the person broke the law, the person must pay either $1,000 for each unauthorized act or the actual harm you suffered (and if the act was intentional or grossly negligent, extra punitive damages). The court can also make the defendant pay the case costs and, for certain plaintiffs, reasonable lawyer fees. If the defendant is the United States, lawyer fees are allowed only if the plaintiff is the prevailing party under section 7430(c)(4). You have 2 years from when you discover the unauthorized inspection or disclosure to file suit. The words “inspect,” “inspection,” “return,” and “return information” use the meanings in section 6103. Information from section 3406 is treated as return information, and misuse of it (except as allowed for section 3406 or section 6103 uses with safeguards) counts as a violation. References to section 6103 also include section 6311(e).
Full Legal Text
Title 26, §7431
Internal Revenue Code — Source: USLM XML via OLRC
(a)(1)If any officer or employee of the United States knowingly, or by reason of negligence, inspects or discloses any return or return information with respect to a taxpayer in violation of any provision of section 6103, such taxpayer may bring a civil action for damages against the United States in a district court of the United States.
(2)If any person who is not an officer or employee of the United States knowingly, or by reason of negligence, inspects or discloses any return or return information with respect to a taxpayer in violation of any provision of section 6103 or in violation of section 6104(c), such taxpayer may bring a civil action for damages against such person in a district court of the United States.
(b)No liability shall arise under this section with respect to any inspection or disclosure—
(1)which results from a good faith, but erroneous, interpretation of section 6103, or
(2)which is requested by the taxpayer.
(c)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 sum of—
(1)the greater of—
(A)$1,000 for each act of unauthorized inspection or disclosure of a return or return information with respect to which such defendant is found liable, or
(B)the sum of—
(i)the actual damages sustained by the plaintiff as a result of such unauthorized inspection or disclosure, plus
(ii)in the case of a willful inspection or disclosure or an inspection or disclosure which is the result of gross negligence, punitive damages, plus
(2)the costs of the action, plus
(3)in the case of a plaintiff which is described in section 7430(c)(4)(A)(ii), reasonable attorneys fees, except that if the defendant is the United States, reasonable attorneys fees may be awarded only if the plaintiff is the prevailing party (as determined under section 7430(c)(4)).
(d)Notwithstanding any other provision of law, an action to enforce any liability created under this section may be brought, without regard to the amount in controversy, at any time within 2 years after the date of discovery by the plaintiff of the unauthorized inspection or disclosure.
(e)If any person is criminally charged by indictment or information with inspection or disclosure of a taxpayer’s return or return information in violation of—
(1)paragraph (1) or (2) of section 7213(a),
(2)section 7213A(a), or
(3)subparagraph (B) of section 1030(a)(2) of title 18, United States Code,
(f)For purposes of this section, the terms “inspect”, “inspection”, “return”, and “return information” have the respective meanings given such terms by section 6103(b).
(g)For purposes of this section—
(1)any information obtained under section 3406 (including information with respect to any payee certification failure under subsection (d) thereof) shall be treated as return information, and
(2)any inspection or use of such information other than for purposes of meeting any requirement under section 3406 or (subject to the safeguards set forth in section 6103) for purposes permitted under section 6103 shall be treated as a violation of section 6103.
(h)For purposes of this section, any reference to section 6103 shall be treated as including a reference to section 6311(e).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
A prior section 7431 was renumbered section 7437 of this title.
Amendments
2019—Subsec. (e). Pub. L. 116–25 inserted at end of concluding provisions “The Secretary shall also notify such taxpayer if the Internal Revenue Service or a Federal or State agency (upon notice to the Secretary by such Federal or State agency) proposes an administrative determination as to disciplinary or adverse action against an employee arising from the employee’s unauthorized inspection or disclosure of the taxpayer’s return or return information. The notice described in this subsection shall include the date of the unauthorized inspection or disclosure and the rights of the taxpayer under such administrative determination.” 2006—Subsec. (a)(2). Pub. L. 109–280, which directed insertion of “or in violation of section 6104(c)” after “6103” in subsec. (a)(2) of section 7431, without specifying the act to be amended, was executed by making the insertion in subsec. (a)(2) of this section, which is section 7431 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. 1998—Subsec. (c)(2). Pub. L. 105–206, § 3101(f), substituted “, plus” for the period at end. Subsec. (c)(3). Pub. L. 105–206, § 3101(f), added par. (3). Subsecs. (g), (h). Pub. L. 105–206, § 6012(b)(3), redesignated subsec. (g), relating to special rule for information obtained under section 6103(k)(8), as (h), and substituted “(9)” for “(8)” in heading. 1997—Pub. L. 105–35, § 3(d)(4), inserted “inspection or” before “disclosure” in section catchline. Subsec. (a)(1), (2). Pub. L. 105–35, § 3(a)(1), (2), substituted “Inspection or disclosure” for “Disclosure” in headings and “inspects or discloses” for “discloses” in text. Subsec. (b). Pub. L. 105–35, § 3(c), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “(b) No Liability for Good Faith but Erroneous Interpretation.—No liability shall arise under this section with respect to any disclosure which results from a good faith, but erroneous, interpretation of section 6103.” Subsec. (c)(1). Pub. L. 105–35, § 3(d)(1), (2), inserted “inspection or” before “disclosure” in subpars. (A) and (B)(i) and substituted “willful inspection or disclosure or an inspection or disclosure” for “willful disclosure or a disclosure” in subpar. (B)(ii). Subsec. (d). Pub. L. 105–35, § 3(d)(1), inserted “inspection or” before “disclosure”. Subsec. (e). Pub. L. 105–35, § 3(b), added subsec. (e). Former subsec. (e) redesignated (f). Subsec. (f). Pub. L. 105–35, § 3(b), (d)(3), redesignated subsec. (e) as (f) and amended it generally. Prior to amendment, subsec. (f) read as follows: “(f) Return; Return Information.—For purposes of this section, the terms ‘return’ and ‘return information’ have the respective meanings given such terms in section 6103(b).” Subsec. (g). Pub. L. 105–35, § 3(b), (d)(6), redesignated subsec. (f) as (g) and substituted “any inspection or use” for “any use” in par. (2). Pub. L. 105–34, § 1205(c)(2), added subsec. (g) relating to special rule for information obtained under section 6103(k)(8). 1983—Subsec. (f). Pub. L. 98–67 added subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date
of 2019 Amendment Pub. L. 116–25, title III, § 3002(b),
July 1, 2019, 133 Stat. 1015, provided that: “The amendment made by this section [amending this section] shall apply to determinations proposed after the date which is 180 days after the date of the enactment of this Act [
July 1, 2019].”
Effective Date
of 2006 AmendmentAmendment by Pub. L. 109–280 effective Aug. 17, 2006, but not applicable to requests made before such date, see section 1224(c) of Pub. L. 109–280, set out as a note under section 6103 of this title.
Effective Date
of 1998 AmendmentAmendment by section 3101(f) of Pub. L. 105–206 applicable to costs incurred more than 180 days after July 22, 1998, see section 3101(g) of Pub. L. 105–206, set out as a note under section 7430 of this title. Amendment by section 6012(b)(3) of Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
Effective Date
of 1997
Amendments
Pub. L. 105–35, § 3(e), Aug. 5, 1997, 111 Stat. 1106, provided that: “The
Amendments
made by this section [amending this section] shall apply to inspections and disclosures occurring on and after the date of the enactment of this Act [Aug. 5, 1997].” Amendment by Pub. L. 105–34 effective on the day 9 months after Aug. 5, 1997, see section 1205(d) of Pub. L. 105–34, set out as a note under section 6103 of this title.
Effective Date
of 1983 AmendmentAmendment by Pub. L. 98–67 effective Aug. 5, 1983, see section 110(c) of Pub. L. 98–67, set out as a note under section 31 of this title.
Effective Date
Pub. L. 97–248, title III, § 357(c), Sept. 3, 1982, 96 Stat. 646, provided that: “The
Amendments
made by this section [enacting this section and repealing section 7217 of this title] shall apply with respect to disclosures made after the date of enactment of this Act [Sept. 3, 1982].”
Reference
Citations & Metadata
Citation
26 U.S.C. § 7431
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73