I got a limited scope audit notice in the mail from taxes I filed back in 2011. I agreed there was a mistake made and have been making payments. I've paid it down to about $650 over the last year or so and it looks like this year's taxes, when we file them, I'll owe another $300 or so. When I called the Taxation and Revenue service to setup payments, he warned me any added amount for this year would make my payment plan default.

Are there rules or something about this somewhere? I can't afford to pay off either amount in a lump sum. Is this guy just being aggressive or will I really have to pay the $300 for this year's taxes to avoid problems? I already defaulted once due to one missed payment and the guy made it sound like a second chance was rare even though I've made many, many payments on-time.

I'm doing the best with what I can afford here. I doubt there's any assistance for such low amounts right?

Any help would be great...