Unfortunately, when money is tight, certain tax debts go unpaid. Yet, because of the significant collection powers that the IRS possesses, these unpaid taxes can result in the unraveling and failure of a business enterprise. When a business cannot pay the taxes shown on a return, often the business or its owner simply fails to file the tax return. This is a bad idea. When this happens, not only must the tax and interest be paid, but penalties based on the failure to pay and the failure to file will be added.