IRS says taxpayers can’t sue it for data breach

Linn Freedman writes about a recent request by the IRS asking that a federal judge on D.C. Circuit dismiss a punitive class action suit filed by taxpayers who were affected by an IRS data breach earlier this year, alleging that the court does no have jurisdiction. The article begins as follows:

The Internal Revenue Service recently requested a federal judge in the D.C. Circuit to dismiss a putative class action suit by taxpayers against the IRS for a data breach earlier this year that affected over 330,000 taxpayers. The IRS alleges that the court doesn’t have jurisdiction over the claims as the claims are preempted by the IRS Code, which allows taxpayers to seek relief against the IRS for unlawfully disclosing tax information. Further, the IRS claims that it is immune from liability under the doctrine of sovereign immunity.

Finally, the IRS alleged that the taxpayers do not have standing to sue the IRS as they have not alleged an actual injury.

Click here to read the full article.

Posted by Logan Davis, Associate Editor, Wealth Strategies Journal.

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