The Importance of an Emergency Fund

Well, I got a letter in the mail today that everyone dreads. I got a letter from the IRS telling me I owe $913 from our 2006 tax returns. I'm still not clear on where they came up with this but I believe it's from my wife and I taking payment from the state retirement funds when we moved instead of having it rolled over into an IRA. I thought we had taken care of this (as far as taxes) at that time, but apparantly I was wrong.

I'll go ahead and say it: This sucks. I've called my accountant to see if this is a mistake. With my luck, this is no mistake and I'll have to pay the money. I've just got that feeling.

I think there is two lessons to take away from this situation:

1. When in doubt, call your accountant! Even if you think it's a trivial matter, you are better off being totally sure by checking with a professional.


2. Have an emergency fund. Luckily, we've been able to build up a small emergency fund over the past few months. (Thanks economic stimulus check!) The fund is no where near what I would like it to be but a least there is enough cushion in it for us to handle an unexpected expense like this.

Anyone ever had similar experiences?