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IRS sued for seizing medical records

by on
in Small Business Tax

A yet-to-be ­disclosed health care provider is suing the IRS and 15 of its agents, alleging that medical records of 10 million Americans were illegally seized. The lawsuit claims the IRS violated the Fourth Amendment when the agents executed a search warrant for financial information on just one employee, turning it into a raid of epic proportions. The complaint said the search warrant failed to specify that the IRS could investigate medical records. Furthermore, information technology officials on the premises warned that the seizure might violate medical privacy laws. Finally, the lawsuit also alleges that the IRS wrongfully seized telephone records of workers.

What’s at stake? The company is seeking damages of $25,000 per violation.

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