II

105TH CONGRESS

2D SESSION S. 1612

To provide for taxpayer recovery of costs, fees, and expenses under section

504 of title 5, United States Code, and section 2412 of title 28, United

States Code, and for other purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 5, 1998

Mr. LEAHY (for himself and Mr. FEINGOLD) introduced the following bill;

which was read twice and referred to the Committee on the Judiciary

A BILL

To provide for taxpayer recovery of costs, fees, and expenses

under section 504 of title 5, United States Code, and

section 2412 of title 28, United States Code, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Equal Access to Jus5 tice For Taxpayers Act of 1998’’.

6 SEC. 2. FINDINGS AND PURPOSES.

7 (a) FINDINGS.—Congress finds the following:
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•S 1612 IS

1 (1) In 1981, Congress enacted the Equal Ac2 cess to Justice Act to help individuals, partnerships,

3 and corporations seek review of, or defend against,

4 unjustified governmental action because of the ex5 pense involved in securing the vindication of their

6 rights in civil actions and in administrative proceed7 ings.

8 (2) Taxpayers have been denied equal access to

9 justice under the Equal Access to Justice Act.

10 (3) The Report of the National Commission on

11 Restructuring the Internal Revenue Service, dated

12 June 25, 1997, found that ‘‘While the Taxpayer Bill

13 of Rights legislation made great strides to allow tax14 payers to recover damages for Internal Revenue

15 Service malfeasance, current provisions do not pro16 vide adequate relief. In addition, there are many

17 cases in which taxpayers are not able to obtain re18 view of Internal Revenue Service actions.’’.

19 (4) The Report of the National Commission on

20 Restructuring the Internal Revenue Service con21 cluded that ‘‘Congress must provide taxpayers with

22 adequate and reasonable compensation for actual

23 damages incurred for wrongful actions by the Inter24 nal Revenue Service.’’.
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1 (5) In hearings before the Senate Finance Com2 mittee in September 1997, average taxpayers testi3 fied that—

4 (A) numerous unjustified actions by the

5 Federal Government, by means of the Internal

6 Revenue Service, caused actual damages and

7 emotional distress; and

8 (B) the Federal Government, by means of

9 the Internal Revenue Service, used its greater

10 resources to punish taxpayers by bringing un11 justified civil actions and administrative pro12 ceedings.

13 (b) PURPOSES.—The purposes of this Act are to—

14 (1) provide taxpayers with the same rights as

15 other individuals, partnerships, and corporations

16 that seek review of, or defend against, unjustified

17 Governmental action by Federal agencies; and

18 (2) provide taxpayers with fair opportunities to

19 seek review of, or defend against, action by the Fed20 eral Government, by means of the Internal Revenue

21 Service, by providing in specified situations an

22 award of attorney fees, expert witness fees, and

23 other costs against the United States.
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1 SEC. 3. TAXPAYERS’ RECOVERY OF COSTS, FEES, AND EX2 PENSES IN ADMINISTRATIVE PROCEEDINGS

3 UNDER THE EQUAL ACCESS TO JUSTICE ACT.

4 Section 504 of title 5, United States Code, is amend5 ed by striking subsection (f).

6 SEC. 4. TAXPAYERS’ RECOVERY OF COSTS, FEES, AND EX7 PENSES IN COURT PROCEEDINGS UNDER

8 THE EQUAL ACCESS TO JUSTICE ACT.

9 Section 2412 of title 28, United States Code, is

10 amended—

11 (1) by striking subsection (e); and

12 (2) by redesignating subsection (f) as sub13 section (e).

Æ