The Check is in the Mail!
Those words always seem to bring up negative feelings and connotations when I hear them as if someone hasn’t really sent you the money that they owe and are simply buying time to keep you from hassling them. I had a renter who was real good at saying those words. Interestingly enough, the postmark was always a day or three later from our initial conversation. Needless to say, I wasn’t too disappointed when he moved out.
But now those words are taking on a different meaning for me. I am saying them myself and am actually pleased to be saying, “The check is in the mail.” That’s because I am the one sending the check. And the recipient is the IRS.
This morning I was able to make out the last check payable to the United States Treasury that I will have to write for the tax years of 2010 and 2011. From now on, I am planning on being caught up and putting this ugly chapter of my financial life behind me. I am not quite ready to discuss how I got myself 6 figures in the hole, but it wasn’t pretty. However, I can say that I have learned from my mistake and continue to learn daily.
I ended up having to cash out my retirement accounts from a previous employer (I still have a newer account). My accountant sent in the money for the taxes and the penalty and deductions this year should have kept up with any tax liability for 2012, so I am hoping that I will never have to owe that much in my life again.
Even though the check was quite large, I had a big smile on my face and feel much relief. Now it is time to tackle some other debts and see what I can get done over the next few years. Paying off debt should free up some funds in the budget and allow me to make some positive progress in net worth even if I am not investing a lot in assets. Instead I will be paying off liabilities and increasing my cash flow and net worth from that side of the equation.
Tracking My Progress
I plan on starting a new blog to help track my progress and bring some public accountability to my actions. I ordered the domain name this evening and am having Andrea from Nuts and Bolts Media help out with getting the site looking good along with all the other mundane things that I figured out I don’t want to do. I would much rather write. Not that I am the greatest writer, but I enjoy it so much more.
Once the site is up (hopefully by 2013), I plan on making a post or two per week. I can explain some more about my goals for debt reduction over the next few years and you can follow my progress if you wish. I am looking forward to it, especially the part about paying off debt. By knocking out the IRS debt and a few others, my monthly expenses are less than my income on paper at least.
And thus ends four years of contacting the IRS and spending hours on hold and getting transferred from department to department to explain myself and keep the hounds at bay. Just think of all the extra time I will have.
Readers: Ever been in debt to the IRS?
On a more pleasant note….
Here are some of the carnivals in the past few weeks that have included some of my content: