The IRS cannot automatically take your refund. You were given incorrect information. You have the right to appeal.
If your state tax refund is levied, the state will issue a notice advising you of the levy. The IRS will also issue a notice, after the levy, offering you the opportunity to appeal the levy. The IRS notice will NOT be issued if you previously received a notice of intent to levy that advised you of your right to a hearing. The state and IRS notices refer you to call (800) 829-7650 or (800) 829-3903 for assistance.
The IRS can only go after refunds of states that participate in the State Income Tax Levy Program.
Federal and State Levy Programs
