If you're a DC resident, you can file for free each year. Eleanor Holmes Norton does a big thing every year for District residents at the Convention Ctr to come and have their taxes completed for free.

I do agree that you have an income problem and understand, as my HHI isn't significantly more than yours. I personally do better with a tax refund (this year, will refinance and pay closing costs with the refund).

Can you use the $ you were paying to the IRS (installment plan) to pay down/off the credit card debt instead?

actually you probably could do freefile-- free tax prep-- at that income.

With 52k a year, in this area and with huge credit card debt, someone has to start making more money or taking on a part-time job.

Agree with the PP that you need to have a forced savings, and it shouldn't be your refund.

Also agree you don't need an accountant on 52k/a year. TurboTax is $50.

OP, rather than relying on a large tax refund at the end of each year, you should adjust your withholdings so that you are not loaning the IRS your money each year for free. You would then have additional cash every pay period rather than getting the refund after your tax returns are filed.

Sorry if you already know this and are using the refund as 'forced savings'.

So use the money you would have paid for your tax obligation for your credit card debt.

Also consider using turbo tax. You don't need an accountant with $52k income and no home ownership.

Really?

Thank you PPs. I googled earlier and all I getting was child support or default student loans. Forgot to check IRS site though.
So, I won't be calling IRS afterall.

from google,

http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/IRS-Procedures/Refund-Inquiries/Refund-Inquiries--

Question: Can I receive a tax refund if I am currently making payments under an installment agreement or payment plan for a prior year's federal taxes?
Answer:

No. As a condition of your installment agreement, any refund due to you in a future year will be applied against the amount that you owe.

The IRS will automatically apply the refund to the taxes owed.
You must continue making your installment agreement payments as scheduled and in full because your refund is not applied toward your regular monthly payment; therefore any payments due under the installment agreement must still be made in full.
Regardless of whether you are participating in an installment agreement or other payment arrangement with the IRS, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. For more information on these non-IRS refund offsets, you can contact Financial Management Service (FMS) at a toll-free number 800-304-3107.

They did that to us too. If you read through the details on your refund it says they will use it first to pay off past due taxes.

FY 2010, our accountant filed our tax return incorrectly, totally by an honest mistake, which resulted in a higher tax refund. Last year we received a letter from IRS stating that we would have to pay them ~ $3,500 back that we got as an extra refund. We never have extra money laying around as we live paycheck to paycheck, 52k/year with three kids under 10, paying $1,500/month in rent as well as paying off huge credit cards debt that we raked up when DH got unemployed and I was in school. So we asked IRS if we can go on a payment plan. They agreed on a 60-month installment plan and we started paying them monthly.

Fast forward, IRS took the remaining balance, that we owe from 2010, out of our tax refund FY 2012 after we filed our taxes, which is leaving us with a very low tax refund.
They took the amount without giving us any heads up or prior notification. I know it’s their money that we owe and we are honestly willing to pay it back. However, IRS taking the amount off from this year refund came to us as a surprise, as we thought that the signed agreement for five year installment plan was an agreed upon installment plan for five years and we were making our monthly payments on time. I, for some reason, had the understanding that IRS will take such measures: reducing tax-refund or wage garnishment, if the individual is not willing to pay the owed amount and is trying to escape the system.

We were really counting on this years refund money to pay off some of the credit card settlement amount that is scheduled to go out in two weeks.

I am just curious if this is the usual procedure: IRS taking the owed money off the refund without any prior notification, even if the individual is making monthly payments. Has anyone ever been in this situation? Should we call the IRS or will it not make any difference?
How will we know that we are off the payment plan now?

I am honestly clueless.