Suggestion. If a 2007 tax return was not filed by you, the IRS has prepared a tax return on your behalf. When the IRS prepares a return from information reported to them they do so in the most disadvantaged way to you. While the 2007 tax year is considered closed for purposes of requesting a refund, you still can prepare and file your 2007 tax return and submit it to the IRS. The most likely outcome is the IRS will accept your return and have it replace the return they prepared for you. This may reduce or eliminate the amount you currently owe for tax year 2007.
As a side note, you state in 2007 you had a foreclosure and the possible issuance of a Form 1099-A (foreclosure, abandonment of property) and or a Form 1099-C cancellation of debt. both of these forms are sent to the IRS, without reporting by you the IRS would have considered either of these forms a sale of property and taxes could be due on the sale (IRS prepared return - 100% taxable)(your prepared return, probably zero taxable).
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