I had a freind do my taxes in 2008 and got a letter today fomr the irs saying it was wrong according to their records and now i owe them money I dont have and am currently collecting unemployment ..can they garnish my unemployment
Yes, the IRS can levy or garnish sources of income if you owe taxes, including unemployment income. Based on your description of your financial situation, you might qualify for 'currently not collectible' status and, if so, the IRS would release the garnishment and would not collect against you until they find that your financial situation has changed and you have the ability to pay back the tax debt.
If your tax return was incorrectly prepared and filed, you should file an amended return (1040X).
**This statement is not intended as legal advice and does not create an attorney-client relationship.