Richard tries to adjust to his new apartment, where he is plagued by noisily amorous neighbors; Joe tries to adjust to the fact that Caroline plans to remain friends with Del; and Annie frantically tries to adjust her financial records when she is notified that the IRS is auditing her for 1993, a year she barely remembers. Her bad-tempered auditor is under fire for being too lenient with his clients, but when he learns she is a dancer in Cats, he strikes a deal: she'll ""never have to pay taxes again"" if she can get him an audition for the show. Enter 'producer' Del and 'director' Charlie. Meanwhile, disturbed by Joe's jealousy, Caroline makes up her mind to break a date with Del by telling him she's been called out of town.

Annie's sister Donna, who has come to town in hopes of reviving her singing career, discovers Richard's secret love letter to Caroline (inside Annie's diary) and uses it as inspiration for a new song, to Richard's horror and Annie's fury, since she has been using the letter to blackmail Richard into taking her mother to electrolysis appointments. Caroline is preoccupied with her perfect plain black pumps, which she left in Joe's apartment; after a fruitless quest to replace them, she sneaks in to retrieve them, and is found by a repentant Joe. Meanwhile, Del and Charlie get snowed in - inside Del's Porsche, with the keys and his cell phone locked in the trunk by Charlie.

It's not a pretty picture when Caroline persuades reluctant con-artist Richard to fake his own death in order to catch the eye of a wealthy art dealer who's scouring the city in search of the works of dead painters - and who winds up delivering the eulogy at Richard's fake funeral.

When Caroline learns that an obscure upstate newspaper has dropped her syndicated strip, she drives up with a reluctant Richard to find out why. Naturally Richard's car breaks down, and the two wind up playing marriage counselor to the only local mechanic and his on-the-point-of-leaving wife. Meanwhile, Annie recognizes an obnoxious diner at Remo's as the theater critic who gave her the worst review of her career, and hatches an elaborate revenge plot that involves Del, Charlie, and a cab driver/actor with his own ax to grind.

Caroline's date reads more like a Shakespearean tragedy after she tells a lie to James, an attractive novelist she runs into during her book signing, and must then desperately cover for the fact that she hasn't actually read his novel; Richard tables his own remedy when Julia's job at Remo's is a disaster and he has to replace her as waiter; it's bad fortune for Annie when a fortune cookie leads Charlie to believe they share a recipe for love; and Del inadvertently becomes third party on a honeymoon.

Caroline is aghast that Annie blabbed to Richard about her feelings for him, and tries to avoid his questions by inviting in a hyper-anxious knife salesman. When Richard discovers the truth about the answering machine message Caroline left for him (and which Julia erased), the two finally confess their mutual attraction, but quickly agree that they have both moved on. But a dinner double date at Caroline's turns into a competition for happiest couple between Caroline & Trevor and Richard & Julia - until they all wind up in an emergency ward with food poisoning from Caroline's fish chowder. Meanwhile, Annie tries a song and dance routine to help Del and Charlie defend their greeting card trade show turf against Del's evil brother Garner.