Whew, that is a terrible situation. I don’t have access to the IRS, just my media contact there. BUT HOLD ON TO THAT LETTER SAYING THEY OWE YOU $11,000!
Right now, the IRS is understaffed and overworked. You can’t get through to talk to anybody! They are so busy that they haven’t sent out tax refunds from people who filed early this year. But they are paying interest of 5% on those refunds back to April 15th!
I mention that because you will be entitled to back interest on the money they agreed they owe you — from the date of that acknowledgment. I have absolutely no idea when the IRS will be able to deal with situations like this. It could be months and months. But you are within your rights to demand interest (the rate varies by quarter!).
So don’t give up. But hiring an attorney now won’t get you anywhere.