Letter 2730, Non-processable Claim for Damages Letter, tells you that the administrative claim you filed for damages against the IRS is missing something required and cannot be processed. These claims are filed under IRC Section 7433 for unauthorized collection actions, IRC Section 7432 for failure to release a lien, or IRC Section 7426(h) for wrongful levy damages.
Why This Matters
You cannot win a damages suit in federal court unless you first exhausted the IRS administrative claim process. A claim that is not processable has not exhausted anything. And the suit must be brought within two years from when you had a reasonable opportunity to discover the violation. Every week spent with a defective claim is a week off that clock.
What a Proper Claim Needs
The letter lists the deficiencies. A valid claim is in writing, sent to the correct IRS office, and includes your name and identifying information, the grounds for the claim in reasonable detail, a description of the injuries, the dollar amount of the claim with supporting documentation, and your signature. The IRS publishes Form 15237 and Publication 5390 for these claims. Use them.
The amount you claim matters. Under the regulations, the amount you can later sue for generally cannot exceed what you asked for in the administrative claim. Do not lowball it.
If you received Letter 2730, call us at (813) 229-7100. Damages claims are technical, and the deadline is unforgiving.