The letter states:
I have requested the Internal Revenue Service (IRS) correct your 2005 tax period by allowing the $21,437.20 Foreign Earned Income Exclusion claimed on line 21 of your return. I asked for this adjustment to be completed by April 15, 2008. Once the balance on 2005 is zero, the $95.37 credit from your 2006 return will be refunded to you, plus interest.
I will contact you again by May 2, 2008. At that time, I hope to be able to provide you with a transcript of the corrected 2005 account, as well as the 2006 refund amount and mailing date.
It would therefore seem about 85% likely that this issue may soon be finally resolved, and a great load off my back.