MS SB2879

Declares all federal laws and IRS actions against Mississippi citizens that violate this act to be invalid and unenforceable in the state, with courts and law enforcement directed to refuse enforcement of violating IRS orders.

Requires state financial institutions to submit quarterly reports to the Department of Finance and Administration detailing IRS inquiries, requests, summons, and subpoenas concerning Mississippi account holders, with annual public reporting by January 30.

Establishes the Internal Revenue Civil Liability Trust Fund to reimburse reasonable attorney's fees and costs for small businesses (25 or fewer employees, $1.5 million or less average annual revenue) that prevail in retaliatory IRS proceedings in U.S. Tax Court.

Prohibits IRS agents, employees, and contractors from engaging in debt collection practices including impersonating law enforcement, threatening violence, contacting employers before judgment, harassing communications, and discriminating against debtors based on political affiliation or ideology.

Creates a civil cause of action allowing taxpayers to sue IRS officers or contractors for damages if they recklessly, intentionally, or negligently disregard civil rights or federal tax law, with liability for actual damages, attorney's fees, and punitive damages for intentional misconduct or gross negligence; effective July 1, 2023.