The U.S. government expects you to pay your taxes to the IRS on time each year. However, many people miss the deadline due to a lack of funds or other challenges, which can lead to tax penalties.

If you don’t pay your taxes on time, you’ll end up paying more. The longer you delay, the more your tax debt grows. Each month, the IRS charges a penalty of 0.5% of your total tax debt, starting the day after the due date. This penalty increases every month but won’t go over 25%. If you have a valid reason for missing the payment deadline, you might be able to avoid the late charges by explaining your situation to the IRS.

If you are unable to pay your taxes on time, then it is your responsibility to contact the IRS and make the proper arrangements. If you owe them a huge money and don't do anything about your situation, then the IRS will have certain powers, like:

1. They can file a Federal Tax Lien. The IRS normally sends a notice informing you of the total taxes that you owe. Even after ten days from receiving the notice, if you don't pay them, then as per this lien, they will have a claim against all the property that you own and acquire later on.
2. They can also file a Notice of Levy. It only happens in serious cases. As per this notice, the IRS can seize your property and your bank accounts, and then use all the funds to pay off your tax liability.

Prison Time: If you have a record of not paying taxes, then the IRS may decide to launch a criminal investigation against you. If you are found guilty, then you may end up facing prison time as well. However, in case of a first-time offense, such a scenario is extremely unlikely to happen. The IRS will generally give you some time to clear off your dues, including the tax penalties. You can also consult a tax attorney to understand the rights you have.

Credit Score: If you have been issued a credit lien, then it will show up in your credit records. Your credit score will take a big hit. It will be difficult for you to get a loan for your house or car.