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Levy: Seizure of Property (Part VII)

Topic: Levy: Seizure of Property (Part VII)

Wrongfully Seized Property – How to recover economic damages

If the IRS wrongfully seized your property, they lost or misplaced your payment, or there was a direct debit Installment Agreement processing error and you incurred bank charges, they may reimburse you for charges you paid. For more information, see Form 8546, Claim for Reimbursement of Bank Charges. If your claim is denied, you can sue the federal government for economic damages.

If the IRS intentionally or negligently didn’t follow Internal Revenue law while collecting your taxes, or you’re not the taxpayer and they wrongfully seized your property, you may be entitled to recover economic damages. Mail your written administrative claim to the attention of the Advisory Group Manager for your area at the address listed in Publication 4235, Collection Advisory Group Addresses. If you’ve filed a claim and your claim is denied, you can sue the federal government, but not the IRS employee, for economic damages.

(IRS Publication 594 and IRS.gov) (TTT 08/11/2020)