I have been unemployed since 12/08 and I owe back taxes of roughly $6600 for 2007. I spoke with someone from the IRS in December to inform them I had lost my job and they said they would have to file a tax lien but not a levy as I was in an uncollectible status. Today I went to purchase something using my debit card and it was rejected. I contacted my bank and they said the IRS had levied my account. What can I do? The only money in the account was from unemployment insurance.

Hopefully you have resolved this. It is apparent that the IRS representative mis-represented their intent to keep you from closing the account and making it unavailable from a levy action.