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What Happens If You Don’t Pay Your Taxes?
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do not influence our editors’ opinions or ratingsWhat Happens If You Don’t Pay Your Taxes?
Not paying your taxes or paying them late can result in hefty penalties and other consequences.
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Expertise Taxes InvestingSabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York.
Sabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York. Published in Editor & Content Strategist + more + more
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19 years of experience Expertise Retirement planning investment management investment accountsArielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia.
Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia. Published in Head of Content, Investing & Taxes + more + more
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23 years of experience Expertise Taxes Small business Social Security and estate planning Home services RIATina Orem is an editor and content strategist at NerdWallet. Prior to becoming an editor and content strategist, she covered small business and taxes at NerdWallet. She has a degree in finance, as well as a master's degree in journalism and an MBA. Previously, she was a financial analyst and director of finance at public and private companies. Tina's work has appeared in a variety of local and national media outlets.
Tina Orem is an editor and content strategist at NerdWallet. Prior to becoming an editor and content strategist, she covered small business and taxes at NerdWallet. She has a degree in finance, as well as a master's degree in journalism and an MBA. Previously, she was a financial analyst and director of finance at public and private companies. Tina's work has appeared in a variety of local and national media outlets. Published in Editor & Content Strategist + more + moreIf you don't pay your taxes by the filing deadline, it may mean paying even more money to the IRS in the form of penalties and interest. Here are some consequences of not paying taxes (on time or at all) and how quickly the IRS will act.
If you don't pay your taxes by the filing deadline, it may mean paying even more money to the IRS in the form of penalties and interest. Here are some consequences of not paying taxes (on time or at all) and how quickly the IRS will act.What happens if you don't pay taxes on time?
What happens if you don't pay taxes on time?The failure-to-pay penalty
The failure-to-pay penaltyIf you don't pay your tax bill in full by Tax Day, the IRS will charge interest on the outstanding amount. The IRS may also levy a late-payment penalty (sometimes called a failure-to-pay penalty) of 0.5% per month, with a maximum penalty of 25% of your unpaid taxes
If you don't pay your tax bill in full by Tax Day, the IRS will charge interest on the outstanding amount. The IRS may also levy a late-payment penalty (sometimes called a failure-to-pay penalty) of 0.5% per month, with a maximum penalty of 25% of your unpaid taxes Internal Revenue Service. Failure to Pay Penalty. Accessed Jan 21, 2026. .» Learn more: How much interest does the IRS charge on late taxes?
» Learn more: » Learn more: How much interest does the IRS charge on late taxes?Notices start to arrive within 1-3 months
Notices start to arrive within 1-3 monthsIf you're issued a failure-to-pay penalty, the IRS will send you a letter about your outstanding balance. You may receive more than one letter. The agency says if you can prove a reasonable cause for paying late or if this is your first offense, you may be able to get the penalty reduced or removed
If you're issued a failure-to-pay penalty, the IRS will send you a letter about your outstanding balance. You may receive more than one letter. The agency says if you can prove a reasonable cause for paying late or if this is your first offense, you may be able to get the penalty reduced or removed Internal Revenue Service. Penalty Relief. Accessed Jan 21, 2026. . AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
Tax liens and collections calls may follow
Tax liens and collections calls may followIf you take no action to respond to the notice(s) or make a payment, the IRS may ramp up its collection tactics.
If you take no action to respond to the notice(s) or make a payment, the IRS may ramp up its collection tactics.A tax lien is a legal claim against property and financial assets you own or may have coming to you. It’s not a seizure of your assets, but it is a claim on them. If you sell the asset, the government could be entitled to some or all of the proceeds
A tax lien is a legal claim against property and financial assets you own or may have coming to you. It’s not a seizure of your assets, but it is a claim on them. If you sell the asset, the government could be entitled to some or all of the proceeds Internal Revenue Service. Understanding a Federal Tax Lien. Accessed Jan 21, 2026. .Liens are often public records. That means that even if they're not on your credit report, liens could affect your ability to get loans, get a job or keep a security clearance. Filing for bankruptcy may not necessarily get rid of the lien or your tax bill.
Liens are often public records. That means that even if they're not on your credit report, liens could affect your ability to get loans, get a job or keep a security clearance. Filing for bankruptcy may not necessarily get rid of the lien or your tax bill.The IRS may send your account to a private collection agency. The IRS will send you a notice should that happen, and it will give you the collection agency’s contact information
The IRS may send your account to a private collection agency. The IRS will send you a notice should that happen, and it will give you the collection agency’s contact information Internal Revenue Service. Private Debt Collection. Accessed Jan 21, 2026. .IRS levies and passport restrictions
IRS levies and passport restrictionsContinuing to ignore notices and not taking steps to repay your tax debt could lead to more serious consequences, such as a tax levy or passport seizure, within a few months' time.
Continuing to ignore notices and not taking steps to repay your tax debt could lead to more serious consequences, such as a tax levy or passport seizure, within a few months' time.A tax levy is the actual seizure of your assets — property, bank accounts, Social Security payments or even your paycheck — to pay your debt.
A tax levy is the actual seizure of your assets — property, bank accounts, Social Security payments or even your paycheck — to pay your debt.The IRS can levy, seize and sell any type of personal property that you own or have an interest in, such as your car or real estate, and apply that money to your unpaid tax bill
The IRS can levy, seize and sell any type of personal property that you own or have an interest in, such as your car or real estate, and apply that money to your unpaid tax bill Internal Revenue Service. What Is a Levy?. Accessed Jan 21, 2026. .Ten days after a notice of intent to seize or levy is issued, the late-payment penalty rises to 1% per month
Ten days after a notice of intent to seize or levy is issued, the late-payment penalty rises to 1% per month Internal Revenue Service. Will I Be Charged Interest And Penalties For Filing And Paying My Taxes Late?. Accessed Jan 21, 2026. . On top of all that, the State Department may not issue or renew your passport, and it might even revoke it if your accrued federal tax debt is over $64,000 ($66,000 for the 2026 tax year) Internal Revenue Service. Revocation or Denial of Passport in Cases of Certain Unpaid Taxes. Accessed Sep 16, 2024. . AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
What to do if you can't pay your taxes
What to do if you can't pay your taxesIf you can't afford to pay your full tax bill, the IRS recommends you pay what you can as soon as possible.
If you can't afford to pay your full tax bill, the IRS recommends you pay what you can as soon as possible.The agency also offers tax payment plans that could help you pay off your debt. Enrolling in one shows you’re making an effort, can lower your late-payment penalty to 0.25% per month, and could help ward off levies.
The agency also offers tax payment plans that could help you pay off your debt. Enrolling in one shows you’re making an effort, can lower your late-payment penalty to 0.25% per month, and could help ward off levies.Another relief option is an offer in compromise. This IRS program allows taxpayers to settle their debt for less than the original amount owed. You can apply for it on your own, but note that the IRS typically accepts fewer than half of the applications
Another relief option is an offer in compromise . This IRS program allows taxpayers to settle their debt for less than the original amount owed. You can apply for it on your own, but note that the IRS typically accepts fewer than half of the applications Internal Revenue Service. 2022 Internal Revenue Service Data Book. Accessed Sep 16, 2024. .To try to keep the problem from happening again next year, review your W-4 form to make sure you’re having enough tax withheld from your paychecks during the year to cover your expected tax bill.
To try to keep the problem from happening again next year, review your W-4 form to make sure you’re having enough tax withheld from your paychecks during the year to cover your expected tax bill.» MORE: 5 ways to deal with tax debt
» MORE: » MORE: 5 ways to deal with tax debtHelpful resources
Helpful resources How to File a Tax Extension Online in 2026 What Is a Tax Lien? How It Works, How to Stop One Tax Levy: What It Is, How It Works and How to Stop One More like this Taxes Tax Relief and Resolution: 5 Ways to Deal With Tax Debt If you're behind on taxes or finding it hard to keep up with your IRS payments, here are five tax relief options that could help. 2 By Sabrina Parys, Tina Orem Guide to IRS Customer Service and Phone Numbers Lesser-known IRS customer service phone numbers could help you skip the line or talk to a person faster. Plus, learn where you can get in-person help if you need it. 2 By Tina Orem, Sabrina Parys IRS Free File: What It Is, How It Works Interested in the IRS Free File service? All you need to know about the program, plus other IRS options for free tax filing. 2 By Sabrina Parys, Tina Orem Get started Get startedon Larson Tax Relief's website
Tax Levies & Liens Release, plus Wage Garnishment Relief;
Tax Levies & Liens Release, plus Wage Garnishment Relief;End Penalties & Interest and Resolve Back Taxes;
End Penalties & Interest and Resolve Back Taxes;IRS Audit Defense, Tax Negotiation, and Payroll Tax Support.
IRS Audit Defense, Tax Negotiation, and Payroll Tax Support. Get started Get startedon Larson Tax Relief's website