The way that IRS debt is handled in bankruptcy really depends on how old the IRS debt is. Generally speaking, if the IRS debt is three years old or older, and you have filed tax returns at least two years from the time that you filed your bankruptcy, that debt can be eliminated. Generally speaking, the newer the IRS debt, the less likely it will be able to be discharged, but it can be handled through a Chapter 13 type of bankruptcy for example and give you better payment options than you might get dealing with the IRS on their own outside of bankruptcy.