IRS Levies on Joint Bank Accounts: Palm Bay Residents' Rights and Recourse

Palm Bay residents with joint bank accounts should understand their rights if the Internal Revenue Service (IRS) levies funds to satisfy a tax debt. The IRS possesses the authority to seize the entire amount held in a jointly held bank account, even if only one account holder owes taxes.

This situation can create significant financial hardship for the non-liable account holder. However, individuals not responsible for the tax debt can reclaim their portion of the levied funds by providing clear evidence of their contribution to the account.

Proving ownership requires specific documentation. Non-liable account holders should gather evidence such as deposit slips, cancelled checks, and bank statements. These documents help demonstrate which funds belonged to whom before the levy occurred.

The IRS offers established procedures for requesting a refund for erroneously levied property. One such method involves filing Form 8546, "Claim for Reimbursement of Bank Charges Incurred Due to Erroneous IRS Levy or Misplaced Payment." Acting quickly is crucial, as a statute of limitations exists for requesting a refund after a levy.