The Internal Revenue Service will reimburse bank charges for victims of IRS wrongful levies. The IRS will not only refund processing fees, but also for overdraft charges directly caused by this levy.
You must complete an IRS Form 8546 to claim the reimbursement. With the Form 8546, also send a copy of the IRS Notice of Levy, plus proof:
- That your bank charges were actually paid.
- The IRS caused the error.
- That you did not continue the error or compound the mistake somehow. Trust us, this happens too.
- That before the wrongful levy was issued, you responded timely to IRS about a wrongful seizure threatened. Include sufficient documentation of your contact with the IRS, to support your position.
The claim or request for reimbursement must be filed with IRS’s Compliance Services office, for whoever at IRS issued the levy. Send it to your Internal Revenue Service Center, Collection Branch, Attention: Claim Specialist.
To be refunded, the claim must be sent within one year from the time you are charged by your bank.