To answer your original question of, "What happens if you don't pay taxes?" Well, it depends on the kind of taxes and the circumstances and jurisdiction. But assuming you're talking federal income tax what happens varies pretty widely on circumstances. Did you deliberately not pay or try to hide income? Did you make an honest effort to pay but made a plausible mistake? How much are we talking? Deliberately just not paying is a big problem, and you're likely looking at federal time and big fines on top of your tax lien. On the other hand an error in which you underpaid usually involves a payment plan (with a late penalty). They can seize income and assets if your amount due is implausible for you to 'voluntarily catch-up.' For the average person who made an honest error though this is unlikely and it's not entirely unheard of to be able to settle for less than you owe in an "offer in compromise." Basically you petition that your underpay was in error and it would be hardship for you lose assets to catch up, so they settle for an amount that is manageable for you.