Once the IRS discovers that you have unfiled returns, various forms of action can be taken. “Enforcement action” is the most serious consequence. What this means is that they enforce the filing of the return, making you pay your tax debt. First of all you may be issued what is known as a Summons. A Summons is used to gain the information and records required to file the tax return, or to find out if the individual is able to pay the tax. A summons can involve requesting information from not just you, but from employers or anyone who may be in possession of the relevant records.
If you do not pay your tax, and when eventually you file your return, the IRS will issue you with a bill called a Notice of Tax Due. This bill will tell you how much you owe. Any interest gathered on the owed tax or penalties for late payment will be addressed in this bill. You can pay through a variety of different methods (credit card, cash, check, money order, whatever you like).
If you are unable to pay, or you make no effort to pay, the IRS may take a few steps to ensure you are able to pay off your debt. These steps can involve forcing you to re-mortgage your house or forcing you to take out a loan (meaning they are getting money from you via your assets). If, after these measures, you still do not pay, you could be issued what is known as a Notice of Levy, meaning your property, bank account and any other assets of value could be seized in order to satisfy the tax debt.
