Unintentional Error - - Delay in Payment

[Guest woodchuck]

Payment to a participant was to have been made under the nonqualified plan in 8 annual installments following separation from service, which occurred last August. The first annual payment was to have been made in November, 2007. (Not a public company) Due to an unintentional error, the November installment was not paid. It will be paid now, in May. Because the error was not discovered in the same taxable year (2007), we can't use Notice 2007-100 Part II to correct this without penalty. Part III suggests that we would tax the payment in 2008, and apply the 20% tax to that amount. Any other ideas about how to "correct" and report the correct amount? The dollars at issue are small; e.g., the installment is less than $5,000.