What Happens if I Don't Pay?

• If you refuse to pay your taxes, the IRS can use a number of techniques to try to get the money from you. At first, you will receive statements from the IRS telling you to pay your taxes. If you do not file your tax return, the IRS will complete one for you based on estimations. If you still refuse to pay your taxes, the IRS can use techniques like wage garnishments and levies to collect the debt.
  
  

Can I Settle My Debt?

• If you owe a large amount of money, you could potentially settle your debt with the IRS. This is done through a procedure known as an offer in compromise. There is a form that you can get from the IRS with which you use to make an offer to settle your debt. The IRS will evaluate your offer, and if it doubts that it can collect the full amount from you, the IRS may accept the offer.
  
  

Can I Make Payments?

• When you owe the IRS money, it will generally allow you to make payments to satisfy the debt. This is known as an IRS installment agreement, and it is relatively simple to obtain. You will need to fill out an installment agreement form and then make arrangements to pay. You can have the money automatically deducted from your bank account periodically, or you can send the IRS a payment. If you use an installment agreement, you will have to pay interest on the amount that you owe.
  
  

What Is the Difference Between a Levy and Garnishment?

• Two of the strategies that the IRS can use to get the money from you that you owe are a levy and a garnishment. A levy is a procedure by which the IRS takes money or assets that belong directly to you to satisfy the debt. For example, the IRS could take money directly out of your bank account. In a garnishment, the IRS takes assets that someone else is holding for you. For instance, the IRS could take money directly out of your paycheck. (See References 4)