my tax return in 2007 I took money out of my 401K for a downpayment on a house and didnt know i had to file it as additional income. I received a notice 2yrs later from the IRS stating that and a bill for the taxes owed on the money I withdrew. Since then all my tax refunds have been taken to pay that taxes owed. I am not disputing the taxes owed but I was not instructed to refiled my tax return to correct the missing income. In addition I had forgotten about moving expenses that i didnt claim. I submitted all the necessary documentation but the IRS appeals office denied my request stating that I waited more than 3 years from the original return date. But I was never given the option to refile ONLY a bill saying taxes were owed. What options do have I have as the disallowed deductions would remove that taxes that are owed.