Contact the IRS immediately and ask to set up a debt repayment plan, ideally before the agency contacts you to request payment. Ignoring delinquent taxes will just make the problem worse. The IRS has the ability to seize a delinquent taxpayer's personal assets (for example, bank account, paycheck, and house) to collect unpaid taxes. In addition, "failure to file" and/or "failure to pay" tax penalties will continue to accrue, thereby increasing the amount that is owed. Most taxpayers with overdue tax bills are placed on an installment payment plan. Those with large tax balances are given the opportunity to pay a lump sum to the IRS to settle what they owe. This process is known as an "offer in compromise."
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