What happens when I file my taxes and I owe the government?
1. If you owe taxes, the Internal Revenue Service (IRS) will send you a bill. This is your first bill for tax due. Based on your return, they will calculate how much tax you owe, plus any interest and penalties.
2. If you don’t pay your first bill, the IRS will send you at least one more bill. Remember, interest and penalties continue to accrue until you’ve paid your full amount due.
3. If you still don’t pay after you receive your final bill, the IRS will begin collection actions. Collection actions can range from applying your subsequent tax year refunds to tax due (until paid in full) to seizing your property and assets. This could include an unannounced visit from a Revenue Officer to your home or business.
(IRS Publication 594) (TTT 07/16/19)