Failure to Agree to Extension
A taxpayer's failure to agree to an extension of the statute of
limitations for assessment will not be considered in determining
whether the taxpayer has exhausted all administrative remedies.
The taxpayer may thus be awarded attorney's fees (having met the
test for the exhaustion of administrative remedies) without having
signed such an agreement.
Effective for proceedings commenced after date of enactment
Award of Litigation Costs
Eliminates the present-law restrictions on awarding attorney's fees
in all declaratory judgment proceedings.
Effective for proceedings commenced after date of enactment
Unauthorized Collection Activities
Increase Recovery Limit
Increases the award ceiling against the United States from $100,000
to $1 million, for recovery of civil damages for reckless or
intentional disregard of guidelines by IRS employees in connection
with the collection of a taxpayer's Federal tax.
Effective for unauthorized actions occurring after the date of
enactment.
Court Discretion to Reduce Award
Permits (but does not require) a court discretion to reduce an award
for civil damages if the taxpayer has not exhausted administrative
remedies.
Effective for proceedings commenced after the date of enactment.
