I have been asked to take a look at this question.
i reviewed the email string, and if you have no agreement now, I concur that you should file the 2007 return, and if you are in arrears. I noticed that you state you have been paying in good faith, but that later on you say you have no installment agreement.
Normally in order for an installment agreement to remain in tact, you have to remain current on your taxes.
So is it your concern that since you have not filed a timely return, that the IRS will now levy your assets to make the collection?