text: if i owe the government money should i file? do i have to file?   yes.   if you know you have pending taxes, the best way is to contact the irs and make the arrangements to file. you must file first.  it is required.  that way you will know better where you stand and you are beginning to be in compliance. then you can talk about how to pay the amounts indicated by your returns.  the payback scheme is based upon the income you need to live.  this may mean such things as changing the kids to public school, one telephone in the house, eating in, etc.  in the old days this was called "tightening your belt".  by the way, the irs has charts that give working numbers for living expenses according to family size and other criteria. you must document your necessary expenses.    if you let the default go, interest will accrue and worst things begin to happen, such as a lien being filed against you(which then becomes a public record), your employer could be contacted and your paycheck could be affected.  don't give excuses unless they are legal.  “i was irresponsible and i want to rectify my mistake”, is probably more palatable. work with the tax man and he will work with you.  no, i don't work for the irs.