Bankruptcy Tax Dischargeon my personalsite. While bankruptcy can be a very useful tool in dealing with the Internal Revenue Service and state collectors,it will not solve all problems.In many cases, a tax debt that would qualify for bankruptcy discharge is rendered non-dischargeable when the taxpayer fails to file a tax return and the IRS or state collection authority uses their statutory authority to assess. Some types of tax, such as employment tax, are not subject to discharge. Fortunately, there are other ways to stopor managecollection problems. Some types of tax can not be discharged and can be collected by the IRS after the bankruptcy case is closed. Bankruptcy may not be available or appropriate for some delinquent taxpayers.