South Florida teacher gets $133,000 back from IRS after agency seized funds from her brokerage account in error

The Internal Revenue Service has returned $133,000 it wrongfully seized from a South Florida teacher.

Michelle Del Buono said she is both jubilant and relieved to recover the funds.

"It's like a tremendous burden off my shoulders," Del Buono said.

She received a check from the U.S. Treasury in the mail last month with interest and has deposited the funds.

"I was ecstatic; I could not believe they turned over my money so quickly," Del Buono said.

Del Buono said her troubles began a year ago when she amended her 2024 federal tax return to include a forgotten deduction. Months later, she received a $133,000 invoice from the IRS with no explanation, and her brokerage account showed the agency seized the funds in May.

"It had to be human error because the computer could not have made this particular mistake," said Steven Klitzner, Del Buono's lawyer.

Klitzner said the IRS skipped several steps before seizing her assets, noting that by the time Del Buono was notified by mail, it was almost too late to fight the agency before the funds were taken. He added that in such disputes, the burden of proof falls on the taxpayer.

"You're guilty until proven innocent. And when you initially call the IRS or speak to someone, their first reaction is, ' You're wrong, we're right. Prove you're right," Klitzner said.

While the IRS never explained how it calculated the $133,000 figure, Klitzner received a letter in May from the agency's Taxpayer Advocate Service stating that "the tax liability was increased in error" and that the IRS "failed to send your client a notice or letter explaining the adjustment made to the account that resulted in a higher balance due."

A CBS News Miami inquiry to the IRS regarding the error went unanswered, as the agency cited policies against commenting on specific taxpayer information. Del Buono maintained she was confident throughout the ordeal.

"It's like you had to show proof that you were in the right. And I was definitely in the right on this particular case," Del Buono said.

Klitzner noted that the situation likely could have been avoided if Del Buono had not amended her tax return. Although taxpayers are permitted to amend returns, he advises including all information in the initial filing, as automated computer processing reduces the likelihood of human error.