PUBLIC LAW 104-168-^JULY 30, 1996 110 STAT. 1465 TITLE VIII—MODIFICATION TO RECOV- ERY OF CIVIL DAMAGES FOR UNAU- THORIZED COLLECTION ACTIONS SEC. 801. n>^CREASE IN LIMIT ON RECOVERY OF CIVIL DAMAGES FOR UNAUTHORIZED COLLECTION ACTIONS. (a) GENERAL RULE. —Subsection (b) of section 7433 (relating to damages) is amended by striking "$100,000" and inserting " $1,000,000". (b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 7433 shall apply to actions by officers or employees of the Internal note. Revenue Service after the date of the enactment of this Act. SEC. 802. COURT DISCRETION TO REDUCE AWARD FOR LITIGATION COSTS FOR FAILURE TO EXHAUST ADMINISTRATIVE REMEDIES. (a) GENERAL RULE,—Paragraph (1) of section 7433(d) (relating to civil damages for certain unauthorized collection actions) is amended to read as follows: " (1) AWARD FOR DAMAGES MAY BE REDUCED IF ADMINISTRA- TIVE REMEDIES NOT EXHAUSTED.— The amount of dsimages awarded under subsection (b) may be reduced if the court determines that the plaintiff has not exhausted the administrative remedies avEulable to such plaintiff within the Internal Revenue Service.". (b) EFFECTIVE DATE.— The amendment made by this section 26 USC 7433 shall apply in the case of proceedings commenced after the date ^°^- of the enactment of this Act. TITLE IX—MODIFICATIONS TO PENALTY FOR FAILURE TO COLLECT AND PAY OVERTAX SEC. 901. PRELIMINARY NOTICE REQUIREMENT. (a) IN GENERAL.—Section 6672 (relating to failure to collect and pay over tax, or attempt to evade or defeat tax) is amended by redesignating subsection (b) as subsection (c) and by inserting aater subsection (a) the following new subsection: " (b) PRELIMINARY NOTICE REQUIREMENT.— "(1) IN GENERAL.— No penalty shall be imposed under subsection (a) unless the Secretary notifies the taxpayer in writing by mtdl to an address as determined under section 6212(b) that the taxpayer shall be subject to an assessment of such pensdty. "(2) TIMING OF NOTICE.— The mailing of the notice described in paragraph (1) shall precede any notice and demand of any penalty under subsection (a) by at least 60 days. "(3) STATUTE OF LIMITATIONS. —I f a notice described in paragraph (1) with respect to any penalty is mailed before the expiration of the period provided by section 6501 for the assessment of such pensilty (determined without regard to this paragraph), the period provided by such section for the assessment of such penalty shall not expire before the later of— 29-194O-96 -22:QL3Part2
�
