<prompt> Human: So, quick background. I graduated college last year and got a job that pays around 35,000 a year. Since I didnt owe any taxes in 2015, I figured it would be good to underwithhold in 2016 since you are allowed to underwithhold following a year with no tax liability without penalty. So on my W-9 I claimed the maximum number of exemptions and kinda forgot about it. Between rent, fixing my car, medical expenses, etc, I didnt really save any money last year. Now that I am getting around to paying my federal taxes for 2016, I noticed on my W-2 that my employer withheld 0 of federal income tax last year. I now owe the IRS around 3,500, but I dont even have that much money in my bank account. Im pretty much living paycheck to paycheck. What should I do?  <response>: And this is why the IRS has a pay as you go system, not a pay by April 15 and youre all good system.You can set up a payment plan with the IRS. Youll pay interestpenalties. 