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The Taxpayer Bill of Rights 2 (TBR2) was signed into the law in 1996.
TBR2 gives you a right to pursue damages of not less than $5,000.00 from any person who provides a false 1099, W2 or other information return to the IRS.
You have up to the later of six years or one year after the date the fraudulent return would have been discovered by the exercise of reasonable care to file suit. (IRC 7434)
I would suggest you to consult with a local attorney. All legal fees should be included in the claim.