Taxpayer bill of rights 2? Bogus 1099s

Found this out there:

FRAUDULENT INFORMATION RETURN PENALTIES - TBR2 establishes a right to pursue damages of not less than $5,000.00 from any person who provides a false 1099, W2 or other information return to the IRS which damages the putative payee. The taxpayer has up to the later of six years or one year after the date the fraudulent return would have been discovered by the exercise of reasonable care to file suit. [IRC 7434] The plaintiff is required to provide a copy of the complaint with the IRS. [IRC 7434(d)]

I wonder if you can pursue this in small claims court. Isn't $5000 the limit in small claims court?

Hopefully all of you have talked to a tax expert about this, April 15 approaches.

posted by steve_o @ 3/21/2006 08:55:00 PM