One Step Forward, Two Steps Back--Now It's the IRS

Image via Wikipedia The other shoe fell today. I got 4, that's right F-O-U-R, registered letters from the IRS. Something has gone wrong with the payment plan I set up to pay off my back taxes from two years ago. Actually, two somethings have gone wrong:

1. They returned the payment plan application I sent in months ago because I left a blank on the form (at the instruction of the phone rep, I might add).

2. They are threatening to levy my wages (been there done that) because I couldn't afford to pay my 2007 taxes either (which I just filed). I actually got a refund on my 2006 taxes, which, together with my economic stimulus check, were immediately gobbled up by the previous year's outstanding balance. Such is the life of the self employed. Apparently, when you agree to a payment plan, you also agree to pay any current taxes as they become due. But I don't have the money to do that. The back story on all this is below.

I did open the letters right away, and I did call them right away, but nobody's home, so I'll have to try again in the morning. Wish me luck.