Letter 2733, Notification of Full or Partial Allowance of Claim for Civil Damages, tells you the IRS agreed to pay all or part of the administrative claim you filed under IRC Section 7433, 7432, or 7426(h). It is one of the rarer good-news letters the IRS sends.
Getting Paid
The letter comes with Treasury Form 197, Judgment Fund Voucher for Payment. Damages are paid from the Treasury's Judgment Fund, not from the IRS's budget, and the payment cannot be processed until you sign and return the form. Sign page 2 and return it as instructed.
Partial Allowance
If the IRS allowed only part of your claim, you will receive Letter 2732 for the denied portion at the same time. The denied portion has no administrative appeal. If you want to pursue it, the remedy is a suit in federal district court within the two-year limitation period. Before you sign anything, make sure accepting payment on the allowed portion does not include language waiving the rest. Read the documents carefully.
What Was Covered
Administrative awards cover only actual, direct economic damages. Litigation and administrative costs are not paid through this process. Attorney fees may be recoverable separately under IRC Section 7430 in some situations.
If you received Letter 2733 and also have a denied portion to consider, call us at (813) 229-7100.