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Most taxpayers are unaware that bankruptcy may be a viable option to discharge income taxes. Although bankruptcy may work to relieve IRS tax debt, it also has the ability to cause issues. Nonetheless, people are declaring bankruptcy in record numbers so that they may wipe away their personal debt. Faced with financial difficulties, they hope that by filing for bankruptcy they will gain a fresh start.
In fact, bankruptcy is an option that is used to relieve debt obligations not just by everyday people, but also by some of the world’s largest businesses. Two questions that need to be addressed are (1) Is bankruptcy is a viable option when it comes to discharging your personal income tax debt? And (2) if it is, do you meet all the necessary conditions? If filing for bankruptcy does not eliminate your taxes, then you may find yourself still facing a huge tax bill after the bankruptcy is final.