Payment of Damages, Costs, and Private Legal Expenses of Government Officers and Employees Who Are Sued Under Section 7217 of the Internal Revenue Code of 1954

The Assistant Secretary for Administration of the Department of the Treasury requested an advance decision on two questions relating to suits that may be brought by taxpayers against officers and employees of the Federal Government. The liability of a Government officer or employee for damages and costs for unauthorized disclosure of tax returns or tax return information may be assumed by the United States and paid from general operating appropriations under certain circumstances. Department of Justice appropriations are available to pay legal fees, including private attorneys fees, incurred by Government officers or employees in defending suits filed under section 7217 of the Internal Revenue Code when specified circumstances exist.