If you cannot pay your tax bill, you may qualify for Currently Non-Collectible (CNC) status. This temporary designation stops IRS collection actions, but interest and penalties continue to accrue. 

Another option is an Offer-In-Compromise (OIC). This allows you to settle your debt for less than you owe.

Both options have pros and cons. CNC status offers immediate relief but increases the amount you will owe down the road. OICs can resolve debt but require providing extensive documentation. Talk to a tax attorney about the best options based on your circumstances.

Bankruptcy can sometimes be helpful to eliminate tax debt. Chapter 7 bankruptcy might get your whole debt dismissed, but you must meet stringent criteria to qualify. Talk with a bankruptcy attorney to determine the best debt resolution for your situation.

Failure to file your taxes means you did not submit your tax return by April 15th. The penalty for failure to file is usually 5 percent of the unpaid taxes, but it can be up to 25 percent. 

Failure to pay occurs when you don't pay your owed taxes on time. This penalty for failure to pay is 0.5 percent per month, up to 25 percent.