IRS owe me money but I haven't paid them any. Confused.

[Juxal]

DH and I are self-employed. DH got an accountant for us. The accountant did our self-assessment, all hunky dory.

A little while ago I got a letter from the IRS fining me £100 for late submission. I rang the accountant who told me to send the stuff to him and he'd deal with it.

I received a bill from him for 90 odd quid.

Now I have a letter from the IRS saying I have overpaid and they owe me about £7.50. I haven't paid them anything. (I haven't paid accountant's bill either yet.)

Any idea what's going on?

have you received interest on savings with tax deducted?

Nope. It's a statement and goes like this:

Brought forward from previous statement.......................100
Overpayment from 07/08 return........................................7.20............92.80
Adjustment to 1st fixed penalty for 07/08 from Return...100..................-7.20
Amount to pay............................7.20CR

And at the bottom:
You have overpaid............................7.20

My brain is imploding.

Sorry can't get the figures properly lined up.