You have filed your returns but don't have the money to pay what is owed. You may think you'll catch up next year, but before you know it you've fallen several years in arrears and suddenly there is a notice from the IRS stating that you owe three or four times the original amount.
It's truly amazing how fast tax penalties and interest add up. You may be in the position to write a check and pay the full amount, including interest and penalties. But if not, and you continue to ignore it, the penalties and interest will continue to accrue and compound.
