Bankruptcy may be used to provide significant tax relief.   Generally, an individual will file either a chapter 7 liquidation bankruptcy, or a chapter 13 reorganization bankruptcy.  While trust fund taxes are not eligible to be discharged or forgiven through bankruptcy, you may be able to discharge income tax liability if certain criteria are met.  Further, taxes that are deemed non-dischargeable in a chapter 7 bankruptcy may still be reorganized and satisfied through a chapter 13 repayment plan.  A benefit of filing bankruptcy is that the filing of a bankruptcy petition acts as an automatic stay to IRS collections.