You have filed your returns but you did not have the money to pay what you owed. You may think, “Oh well, I’ll catch up next year.” Before you know it, you find yourself several years behind, and suddenly there’s a notice from the IRS stating that you owe three or four times the original amount.
It’s truly amazing how quickly tax penalties and interest add up. Now you have a choice, you can write a large check and pay the full amount, including interest and penalties. Or you can just keep ignoring them while the penalties and interest keep piling up.
