IRS Levied Me by Mistake – What to Do If You Were Wrongfully Targeted

Marc Boulanger • September 4, 2025
A man is sitting at a desk reading a letter from irs

You Got Levied by the IRS—but You Don’t Owe the Debt?

It happens more often than you think.


Whether it’s a mistaken identity, outdated IRS records, or funds taken from an account that doesn’t belong to you, wrongful IRS levies are a real problem—and can cause serious financial disruption.


If the IRS seized your money, wages, or property by mistake, this post explains what your rights are, how to file a wrongful levy claim, how to get your funds back, and how to prevent the IRS from doing it again.

What Is a Wrongful Levy?

A wrongful levy occurs when the IRS seizes:


  • Assets from a person who doesn’t owe the tax

  • Third-party property not belonging to the taxpayer

  • Funds from an account held jointly, but contributed by someone else

  • Wages or income of the wrong individual



This often leads to searches like IRS garnished my wages without notice or questions about can you stop an IRS levy after it starts—because taxpayers are desperate to know if they have any chance to fight back.

Common Causes of IRS Mistakes

  • IRS sent levy notice to the wrong Social Security Number or EIN

  • You already paid the tax debt

  • The levy happened after the statute of limitations (CSED) expired

  • You’re a non-liable party (e.g., spouse, parent, business partner)

  • IRS failed to send the required Final Notice of Intent to Levy

Can You Get the Money Back?

Yes—if the levy was wrongful, you can request a refund or reversal through:


  • A wrongful levy claim under IRC §6343

  • A CAP appeal

  • Filing Form 911 to request Taxpayer Advocate assistance


  • A legal claim under IRC §7433 if damages occurred


Many California taxpayers also face IRS bank account levy in California issues or disputes involving California FTB wrongful levy disputes, which can add another layer of complexity.


Related: IRS seized my bank account – Can I Get the Money Back?

Step-by-Step: What to Do If You Were Levied by Mistake

Step 1: Contact the IRS Immediately


Call the number on your levy notice or work with a licensed CPA to:


  • Identify the cause of the error

  • Request an immediate levy release

  • Stop further enforcement while the issue is reviewed
    

Step 2: File a Wrongful Levy Claim (IRC §6343)


You (or your representative) must:


  • Submit a written request to the IRS Advisory Office

  • Include documentation showing ownership of the funds

  • Provide proof that the debt was not yours, or the levy was legally improper

Related: IRS Seized My Bank Account – Can I Get the Money Back?

Step 3: Consider Taxpayer Advocate Involvement


If the IRS won’t act—or the levy is causing immediate hardship—you can file:


  • Form 911 – Request for Taxpayer Advocate Service Assistance

  • A TAO (Taxpayer Assistance Order) may be issued to stop the IRS

Related: IRS Garnished My Wages Without Notice – Is That Legal?

How to Protect Yourself from Future IRS Errors

  • Keep your address and contact info updated with the IRS

  • File all tax returns on time—even if you can’t pay

  • Monitor your IRS transcripts regularly for updates or changes

  • Don’t ignore IRS letters—even if you think they’re incorrect

  • File Power of Attorney forms (2848) with your CPA for oversight

We Help Orange County Taxpayers Fight Back Against Wrongful IRS Levies

At Boulanger CPA and Consulting PC, we:


  • File wrongful levy claims and appeals

  • Reverse improper IRS collections

  • Recover funds taken from non-liable parties

  • Help you prevent further enforcement


For deeper insights into protecting your rights, be sure to explore more in Defend What’s Yours.


📞 Call (657) 218-5700 or request urgent IRS help at www.orangecounty.cpa

Frequently Asked Questions

Can the IRS really levy me by mistake?

Yes. Errors happen when IRS records are outdated, payments aren’t applied correctly, or the wrong taxpayer is linked to a levy.

What should I do first if I was wrongly levied?

Immediately contact the IRS and explain the error. Provide supporting documentation, such as proof of payment or evidence that the debt isn’t yours.

Can I get money back after a mistaken levy?

Yes. If funds were wrongfully taken, the IRS may return them once ownership and error are confirmed. Timing depends on whether funds were already applied.

How do I file a wrongful levy claim?

You can file a wrongful levy claim with the IRS Advisory Group or use Form 8546 for related bank charges. Documentation proving error is required.

What if the IRS denies my claim?

You may appeal through the IRS Appeals Office or file a wrongful levy lawsuit in federal court within the statutory time limit.

Can California state agencies also levy by mistake?

Yes. The Franchise Tax Board (FTB) and Employment Development Department (EDD) sometimes issue levies in error, and both have procedures to dispute them.

Should I get professional help for a mistaken levy?

Yes. Professional representation ensures your claim is filed correctly, supported with evidence, and pursued quickly to recover your funds.


📣 About the Author


Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.


He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.


With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.


Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.


Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.


📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.


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