| If the IRS issues an erroneous IRS Tax Levy on a | | | | an individual's property (opposed to that of a |
| taxpayer's bank account, causing a bank fee or fees, | | | | third-party); and 2) violates a legal procedure or law, |
| such as overdrafts, penalties, etc., the individual has a | | | | such as Due Process. To claim an individual has |
| right to a refund for the charges. Not to exceed $1000, | | | | suffered an erroneous IRS Tax Levy necessitates a |
| the reimbursement must be filed for prior to a year | | | | timeline and analysis that shows when/how the IRS |
| after the charges accrued. | | | | committed an error in the assessment of the bank |
| The IRS has the authority to issue bank levies on any | | | | levy. In addition, the taxpayer must not have in any |
| account bearing the name of the individual who | | | | way contributed to the error, nor have refused to |
| accrued the tax liability, whether that account is a | | | | promptly answer any questions or requests for |
| single or joint account. Generally, the IRS issues a | | | | relevant information prior to the levy's issuance. |
| Notice of Levy to the individual's bank, which attaches | | | | A refundable bank fee must be the direct result of the |
| the levy to all the individual's accounts. The bank then | | | | bank's following the instructions of the levy. Most |
| freezes all funds on deposit in those accounts, | | | | commonly, such a fee accrues as either a check fee |
| disallowing access to funds for 21 days thereafter. | | | | or overdraft fee that resulted from the 21-day freeze |
| During this time, the individual/bank has the ability to | | | | on the bank account's funds. |
| address problems regarding ownership and whether | | | | Fill out IRS Form 8546, the Claim for Reimbursement |
| each/every account may be legally collected. At the | | | | of Bank Charges Incurred Due to Erroneous Service |
| same time any check cashed for any of the seized | | | | Levy or Misplaced Payment Check, in order to regain |
| accounts will bounce, incurring a bank fee. After the | | | | any bank fee resulting from an erroneous IRS Tax |
| 21-day timer has expired, the bank is legally obligated | | | | Levy. If successful, the taxpayer will be paid either by |
| to submit all seized funds to the IRS with any interest | | | | electronic transfer, requiring the individual to disclose |
| accrued during the freeze. | | | | banking information, or by check. |
| The IRS deems a levy erroneous if it: 1) aims to collect | | | | |