The short answer
Interest and a late payment penalty start adding up. If you do nothing, the IRS sends more notices, may file a lien, and can levy your pay or bank account. Payment plans and other options can help. File your return on time even if you can't pay. The late filing penalty is much bigger than the late payment penalty.
If you can't pay in full, pay what you can and apply for a payment plan. If you can't pay anything, ask about currently not collectible status.
Words to know
- Currently not collectible (CNC)
- A status where the IRS pauses most collection because you can't pay basic living costs. You still owe the debt.