Today was definitely tax day.
I had a meeting with the WA State Dept. of Revenue (to setup a payment plan for ‘06/’07).
And I finally got my acceptance letter for a payment plan from the IRS on the aprox 20K that I owe. I have to put 1K down and then begin making $600 a month payments next month.
Cool beans. I’m glad they approved this. I should be able to handle the payment assuming everything goes according to plan business wise the next few months.
offer in compromise
I looked into an “offer in compromise” which is basically a way to settle IRS debts for less than the amount owed. I doubt I would qualify though, and I think I can make the payment plan payments barring any big upheaval (which could still happen). If for some reason I get to a point where my business goes under completely (god I hope not!), being on a payment plan doesn’t disqualify me from trying an offer in compromise in the futre
Mom Debt
I gave my Mom $800 in cash for my Sept. payment. $350 more than normal.
She cried.
It made me feel good. I wish I could send that much each month, and while my goal is to send her 1K a month, its not possible quite yet.
{ 6 comments… read them below or add one }
Good for you on keeping up the payments to your mom. Is there anyway you could deposit the $$ into a Roth IRA for retirement funds so that the money can be invested and earn tax free until she’s able to use it in her retirement later?
DK- GOOD JOB – on the extra cash for your mom AND the IRS settlement.
As I recall the State of Washington debt is $2 or $3k. Would love to see you set a date by which to knock that one out. It seems to me that if you can cross one of your debts off the list as paid in full it will not only be a great financial achievement but also a great motivational victory.
DK–
I’ve been reading your blog for quite a while, since you started living in your office. It’s a pleasure to read these positive updates from you. I’m extremely impressed with the improvements you’ve managed to make in your life in the past year.
My husband and I went through a rough patch for a few years, but since then, everything has slowly been improving. Sometimes, when he’s having a hard day, I ask him to tell me all the ways his life is better now than it was a year ago. The list is often striking.
I hope you ask yourself this question now and then.
And I hope you have some small celebration for yourself over this success.
keep up the good work! i just deposited a loan check from my 401k, which will enable me to pay off the 13K i owe the IRS. i have been paying the govt $360/mo for years (!), and it will be so good to be paying that amount to myself instead of them.
Congratulations, Debt Kid. You are proving time and again that you are the anti-Casey (remember him?).
How about another detailed update on the debt for your loyal readers? Update! Update!
Best,
Alan
PS: Update! Update!
@ SmartGirl – I’d have to look into that. Right now though, my Mom needs the money each month that I send just to live on.
@JustMe – I may HAVE to do that. The WA revenue dept isn’t as willing to do long term payment plans, so I may have to dip into my biz savings and just pay off the just over 3K I owe them. That would pretty much wipe out my savings though…we’ll see what I can work out.
@ MB – Thanks! I like writing these ones as well : ) Hopefully more to come.
@ Bob – Thanks, yeah at my $600/mo rate, it’s going to take awhile for me to pay off the IRS. But I’m starting to formulate a 3-year plan, ie be back to zero in three years.
@ A. Friend – Thanks, and yes, I do remember Casey. He actually has e-mailed me a few times wanting to work together on some foreclosure referral related stuff. I politely declined. Did you see he has a new blog up? http://truecasey.com/ I think it is….