IRS Publication 5390 – If the IRS has wrongfully levied your property, failed to release a tax lien, or engaged in unauthorized collection actions, you may have the right to recover damages and costs. IRS Publication 5390 (February 2020) is the official IRS guide that walks taxpayers and representatives through preparing and submitting these administrative claims — a mandatory first step before filing a lawsuit in federal district court.
Download the latest IRS Publication 5390 PDF here: https://www.irs.gov/pub/irs-pdf/p5390.pdf
This publication remains the current authoritative resource (as confirmed on IRS.gov forms listings in 2026) and pairs perfectly with Form 15237 (Administrative Damage Claim) and Form 15237-A (Request for Section 7430 Recoverable Costs).
Why IRS Publication 5390 Matters?
Before suing the United States for damages under these specific Internal Revenue Code (IRC) provisions, you must exhaust administrative remedies by filing a proper claim with the IRS. Publication 5390 details exactly what your claim must contain to be considered valid. Filing an incomplete claim can delay or derail your recovery.
The IRS Internal Revenue Manual (IRM 25.3.1 and 5.12.3) explicitly directs taxpayers to Pub 5390 for checklists and requirements. Using it (along with the optional but highly recommended Form 15237) helps ensure your submission meets Treasury Regulations (e.g., 26 CFR 301.7433-1) and avoids technical denials.
Key IRC Sections Covered in Publication 5390
1. IRC Section 7426(h) – Wrongful Levy Damages (Third-Party Claims)
Applies when the IRS levies or sells property in which a third party (not the taxpayer) has an interest. You can recover direct economic damages (up to $1,000,000 for reckless/intentional violations or $100,000 for negligence).
2. IRC Section 7432 – Failure to Release Lien
Covers cases where the IRS does not release a Notice of Federal Tax Lien (NFTL) after the underlying liability is satisfied or the lien is no longer enforceable under §6325. No statutory cap on actual damages.
3. IRC Section 7433(a-d) – Unauthorized Collection Actions
For reckless, intentional, or negligent disregard of the IRC or regulations during collection (e.g., improper levies, harassment). Caps apply similarly to §7426(h).
4. IRC Section 7430 – Recovery of Costs and Attorney Fees
Related administrative or litigation costs (filing fees, expert witnesses, reasonable attorney fees) if you are the “prevailing party.” Publication 5390 explains how to request these in connection with the above claims.
Step-by-Step: How to Prepare Your Administrative Claim (Per Pub 5390 & Form 15237)?
Publication 5390 and supporting IRS guidance emphasize these core elements:
- Identify Yourself and the Claim Type
- Full legal name, address, phone, TIN (SSN/EIN).
- If represented, include Form 2848 (Power of Attorney).
- Check the box for §7426(h), §7432, or §7433 on Form 15237 (or clearly state it in a written claim).
- Describe the Facts and Legal Grounds
- Provide a clear chronological narrative (typically 2–3 pages).
- Include dates, IRS actions, specific Code/regulations violated, and how they caused harm.
- Reference all attached exhibits (e.g., “See Exhibit 7 – Lender denial letter dated MM/DD/YYYY”).
- Calculate and Document Damages
- Only direct economic damages (actual out-of-pocket pecuniary losses proximately caused by the IRS action).
- Emotional distress, reputational harm, or punitive damages are generally not recoverable.
- Use a damages schedule/table reconciling each category, amount, proof, and exhibit.
- Attach Supporting Documentation (Exhibits)
- Levy/sale notices, lien filings, release requests, bank statements, lost contracts, invoices, appraisals, correspondence with IRS, etc.
- Number exhibits sequentially and include an index.
- Sign Under Penalty of Perjury
- The claim (or Form 15237) must be signed by the claimant or authorized representative.
Note: Form 15237 is optional but strongly encouraged by the IRM because it organizes the required information and reduces processing delays. No specific form is mandated, but your submission must contain all minimum elements outlined in Pub 5390 and the regulations.
Where to Mail the Claim?
Send the complete package (cover letter + Form 15237 or equivalent + narrative + exhibits + damages schedule) via certified/registered mail or personal delivery (keep proof of mailing/delivery) to the IRS Area Director, Collection Advisory for the taxpayer’s geographic area.
Use IRS Publication 4235 (Collection Advisory Group Addresses) to confirm the exact office and address (updated periodically on IRS.gov).
Important: Email or fax submissions are not accepted for these claims.
Critical Deadlines & Waiting Periods
- Statute of Limitations to File Claim: Generally 2 years from the date the cause of action accrues (when you had a reasonable opportunity to discover the facts).
- Waiting Period Before Lawsuit:
– 6 months for §7426(h) and §7433 claims (or sooner if IRS denies the claim).
– 30 days for §7432 claims. - Section 7430 Costs: File Form 15237-A within 90 days after final denial (or after the waiting period if no decision is issued).
If the IRS does not respond within the waiting period, you may proceed to court while the 2-year limitation is still open.
Requesting Costs Under Section 7430 (Form 15237-A)
After the administrative claim is denied (or the waiting period expires), use Form 15237-A to request recoverable costs if you substantially prevailed and the IRS position was not substantially justified. Publication 5390 provides specific guidance on what qualifies and how to document these costs.
Pro Tips from IRS Guidance & Publication 5390
- Organize your package professionally (cover letter first, then form/narrative, damages schedule, exhibits in a tabbed binder or clearly labeled PDF if allowed by local office).
- Prove causation and quantification with hard evidence — the IRS will scrutinize every dollar.
- Keep copies of everything and track all dates meticulously.
- Consider consulting a tax attorney experienced in IRS litigation — these claims are technical and time-sensitive.
Disclaimer
This article summarizes information from official IRS sources including Publication 5390, Forms 15237/15237-A, the Internal Revenue Manual, and Treasury Regulations. It is for informational purposes only and is not legal or tax advice. Tax laws are complex and fact-specific. Always consult a qualified tax attorney or enrolled agent before filing any claim. Rules and addresses can change; verify the latest on IRS.gov.
Ready to take action?
Download IRS Publication 5390 today: https://www.irs.gov/pub/irs-pdf/p5390.pdf
Review Form 15237 and Form 15237-A on IRS.gov.
Protect your rights and recover what you’re owed by following the official instructions in Pub 5390.
Last updated for accuracy based on IRS.gov listings as of February 2026.