When someone is overwhelmed by IRS debt, it’s common to feel like there are no good options left. In reality, bankruptcy and tax resolution often work hand-in-hand to create a clean slate—and when used together correctly, they can provide powerful relief.

As a tax resolution specialist here in the Rochester area, I routinely help individuals and businesses figure out whether bankruptcy, traditional IRS programs, or a mix of both will get them back on track. You don’t need to be an expert on the technical rules—that’s my job. What you do need is a clear understanding of how these tools can work together.

Bankruptcy Doesn’t Automatically Fix IRS Problems—But It Can Help

Many people believe that filing bankruptcy instantly wipes out tax debt. Sometimes it can—but not always. It depends on the type of tax, how old it is, and a few filing-related factors.

Here’s the good news:
Bankruptcy can remove certain debts, which often makes it easier for us to build an affordable IRS resolution plan for the rest.

Think of bankruptcy as clearing space so you can breathe again.

Tax Resolution Fills the Gaps Bankruptcy Can’t

Even when bankruptcy helps, you may still have taxes that remain due. That’s where tax resolution comes in.

I work with clients to determine the best IRS strategy for whatever tax debt remains, such as:

• Offers in Compromise (settling for less than you owe)

• Payment plans that fit your budget

• Penalty abatement to remove costly fees

• Levy or garnishment releases

• Appeals if the IRS makes an unfair decision

Using tax resolution after a bankruptcy often results in a more manageable, realistic plan because the rest of your financial picture has been cleaned up.

Why Combining the Two Often Brings the Best Results

When used strategically, bankruptcy and tax resolution can:

1. Stop aggressive IRS actions

Bankruptcy triggers an automatic stay, which temporarily halts IRS levies, garnishments, and collection efforts. This gives us time to figure out the right long-term plan.

2. Reduce your overall debt load

By clearing credit cards, medical bills, or qualifying taxes, bankruptcy frees up the cash flow needed to handle any IRS balance that remains.

3. Make IRS settlements more reachable

If bankruptcy helps eliminate other financial pressures, you may qualify for a more favorable Offer in Compromise or repayment plan.

4. Provide a true financial reset

The combined approach lets you not only remove the debt you can’t handle but also restructure what remains so you can move forward confidently.

A Strategic Decision—Not a Last Resort

Bankruptcy is sometimes portrayed as a failure, but in my 24 years of tax work, I’ve seen it be a smart, proactive step for many people. When paired with expert tax resolution strategies, it can create powerful long-term relief.

Every case is different—especially with the IRS involved—which is why a one-size-fits-all answer never works. If you’re here in the Rochester, NY area (or anywhere in the U.S.) and facing unmanageable IRS debt, I can help you understand your options and build a plan that makes sense for your life.

If you’re facing a tax issue due don’t panic. At Charles Young, CPA, we specialize in IRS representation and tax resolution, helping people in Rochester and beyond find relief from unfair tax burdens. Contact us at (585) 329-2249 or visit cjyoungcpa.com to schedule a consultation.

Let’s work together to find the best solution for your tax situation!

Confidential and Non-Judgmental Service

We understand that dealing with the IRS can be sensitive. Our team provides confidential, respectful, and non-judgmental service, focusing on your financial well-being and peace of mind.