A while ago, I mentioned that there was a mistake on our 2005 taxes. After fixing it, it showed that we owed over $2,000 to the IRS. I sent as big of a payment as we could at the time (a little over $600), filed the amended return and waited for the official word from the IRS about penalty and interest.
Well, we got word. The total owed is a little over $1,600 and that’s about what I thought it would be. I am also pleased that the interest rate is at 8%. While not the best rate (the best rate is 0%, of course 😉 ), I can live with that.
I still haven’t received information regarding the payment plan that I wanted in place for the debt. I am hoping that information will arrive soon so we can start paying on it. The thought did cross my mind to use a balance transfer check to pay it in full, but I still have that feeling to hold off on doing any balance transfers for a little bit.
The big question is whether I should include it in our credit card debt total. Technically, we are paying back part of a refund that we received. That refund went towards our credit card debt. In a way, I probably should add it back into our credit card debt total. The other thing I could do is track it separately with my NetWorth IQ profile. I still have to think about it some more.
I’m actually glad the bill arrived, because now that we have concrete numbers, I can plug that into a debt reduction calculator and gauge how we are progressing. While this added debt will set us back a little bit, I’m not about to give up trying to meet our goal date of May 2009.
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