Government will sue you and if courts find you owing money to the government and you fail to pay up, some of your property will be seized and sold off to cover the due tax and legal fees.

That "some" might not be the property you failed to pay the tax on (eg it could be your car whereas you failed to pay property taxes on your house). There are usually protections on the property you inhabit, but otherwise they should look to seize whatever is smallest but big enough to cover the amount due.

With domains, you lose the domain that you failed to pay fees on, and no other property will be seized to pay it off.

The difference is in requiring a court system and in what way you are liable (any of your holdings can cover it).