Erroneous Levies

If levies have been erroneously imposed, taxpayers and/or their authorized
representatives should immediately contact the IRS office that issued the
levy. Financial institutions are required to wait 21 days before turning over
the money which has been levied. All notices of levy should contain the
information necessary to contact the IRS regarding that levy. It is IRS
policy to reimburse taxpayers for bank charges, including overdraft
charges, that result from erroneous levies. From 8546, "Claim for
Reimbursement on Bank Charges Incurred Due to Erroneous Service
Levy," should be filed with the district or service center director within
one year after the expense occurs.