I had not filed a tax return since 1998 and the IRS hit me last year, and as a result I entered into a payment plan with the IRS in mid 08. They went back 10 years on me to 1998 which happened to be the largest amount I owed in total. They threw out three years they actually owed me because we can only go back three years as citizens (that's a whole nuther rant!). Anyway, my question is, that since they apply my monthly payment to the oldest amount owed, can I now drop the remaining 98 amount off my total in order to bring my payment down? Any insight would be greatly appreciated.
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