I would suggest you use the taxpayer advocate service. They would help you resolve this issue with the IRS asap.
Here is a link for more details on this service.
http://www.irs.gov/advocate/article/0,,id=97395,00.html
Let me know if you have any question.
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
Certified Public Accountant (CPA)
CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
Dear XXXXXXXXXXXXX,
I have been asked to take a look at your question.
I do not know why the tax advocate will not return your calls.
There are basically three kinds of tax relief you can seek with the IRS.
1. installment agreements.
2. You can request an offer in compromise. An offer in compromise is generally not approved unless the request is accompanied by a good faith partial payment, and the installment agreement is current or failing in good faith, and it appears like the IRS is not going to be able to collect the debt. AND
3. hardship abatement of penalties and interest, and in extremely rare instances, forgiveness of the debt.
A person can file bankrupts, and if the taxes are current, can get tax debt older than 3 years old to be included in the bankruptcy.
However, before you do any of those things, it may be better for you to seek some tax assistance from attorneys and legal experts.
You asked about legal assistance for low income tax payers. AND there is some available.
The Federal government provided grants that are also matched by the IRS to pay legal organizations such as law schools, and associations to provide free legal assistance in dealing with IRS legal problems such as yours.
You can find the nearest legal assistance, which is free or a very small fee (based on your adjusted gross income) using this publication:
http://www.irs.gov/pub/irs-pdf/p4134.pdf