If you are making payments on taxes can IRS just take your money out of savings?feel robbed also IRS admitted to it being there mistake but bank will not refund fees it charged to take the money out how is this fair?

It's hard to advise without the whole story. You must have signed an agreement for direct payments from your bank, a different account such as checking, and the IRS took funds out of savings? This might be because you have an evergreen account that uses savings when checking is overdrawn?

Go in and have a calm talk with a bank officer. Often they will drop fees if you are nice about it. The IRS may say oops, but since you owed the money and they are 'letting' you pay over time, they aren't going to undo what they did.

What I'm getting here is that you owed taxes and reached a payment agreement with the IRS. Some signals were crossed and the IRS took all the funds in your account when you were under a payment agreement.

The bank is under no obligation to refund fees. However, if you can prove that the IRS acted in violation of a payment agreement you entered into, then they can be held responsible for those fees.

Agree with Joy that it is difficult to advise without knowing the situation. What was the agreement? Have you complied with the agreement completely?