I owed $6,000 to the IRS for 2008 on my tax return filed on 4/15/09. I only had enough funds to pay them $4,000. I went online and set up a payment plan. The IRS gave me until 2/1/10 to pay the tax but still charged me interest on the $2,000 balance due. Ok no prob.
I chipped away at the $2,000 balance. Sending in 1040-Z payment coupons with cashier checks. I just sent my final payment in 2 weeks ago.
I get a certified letter in the mail today stating that I now owe the IRS almost $3,000 and no payments are showing applied. How can that be?! I have the copies of the cashier checks and the banks can see if they've been cashed.
What should I do at this point.