You’ve filed your returns but didn’t 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 that you owe three or four times the original amount.
It’s really amazing how quickly tax penalties and interest add up. Now you have a choice, you can write a big check and pay the full amount, including interest and penalties. Or you can just keep ignoring them while the penalties and interest continue to accrue.
