SEC. 7431. CIVILDAMAGES FOR

U N A U T H O R I Z E D INSPECTION OR D I S C L O S U R E O FRETURNS AND RETURN I N F O R M AT I O N .

(ii) in the case of a [ willful disclosure or a disclosure ] willful in - spection or disclosure or an in - spection or disclosure which is the result of gross negligence, punitive damages, plus (2) the costs of the action. (d) PE R I O D F O R B R I N G I N G A C T I O N. —

(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

(a) IN GENERAL.—

(1) [ DI S C L O S U R E ] IN S P E C T I O N O R

1997–43 I.R.B. 17 October 27, 1997

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) RE T U R N; R E T U R N I N F O R M AT I O N. — For purposes of this section, the terms “return” and “return information” have the respective meanings given such terms in section 6103(b). ]

(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, the Secre t a ry shall notify such taxpayer as soon as practicable of such inspection or disclosure.

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. For purposes of subsection (b), the reference to section 6103 shall be treated as including a reference to section 3406.

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(e) N OTIFICATION OF UNLAWFUL INSPEC -

(f) DE F I N I T I O N S. — For purposes of this section, the terms “inspect”, “inspec - tion”, “return”, and “return informa - tion” have the respective meanings given such terms by section 6103(b).

T I O N A N D DI S C L O S U R E.— If any person is criminally charged by indictment or in - formation with inspection or disclosure of a taxpayer’s return or return information in violation of—

(1) any information obtained under

[ ( f ) ] (g) EX T E N S I O N TO I N F O R M AT I O N

OBTAINED UNDER SECTION 3406.—For purposes of this section—

October 27, 1997 18 1997–43 I.R.B.