What is the consequence of failing to pay income taxes?

Failing to pay income taxes primarily results in interest and penalties imposed by the government. When taxes owed are not paid by the due date, the Internal Revenue Service (IRS) and other tax authorities can assess additional charges on the outstanding amount. These penalties typically increase over time, making it increasingly costly to delay payment. The interest accrues on the amount owed, and the longer the delay, the larger the total liability becomes. This mechanism is designed to encourage compliance with tax laws and to deter taxpayers from neglecting their obligations.

While other consequences related to financial mismanagement can occur, such as potential loss of business licenses or various changes in tax rates, these are not direct results of failing to pay income taxes. Interest and penalties are direct consequences that apply specifically to unpaid taxes, making this answer the most accurate.