In a Chapter 13 bankruptcy, the taxes will be calculated in the trustee payment. You will pay on your bankruptcy for the time specified by the court. This is normally five years. At the end of the bankruptcy, you will no longer owe on the debt. Therefore, if you have taxes owed for several years and you file bankruptcy, you will no longer owe the taxes once your case is discharged. In some cases, you may be able to have your tax debt reduced. You would need to talk with a tax consultant in order to do this. Check first with your bankruptcy attorney to find out what you will need to do. Your attorney may tell you who to contact at the local tax office. There are different rules governing the issue of tax debt relief in different states. You may owe for taxes for your state or to the Internal Revenue Service. If you have received a letter from either your state revenue department or the IRS, take that with you to your attorney. Your attorney should explain the process to you and advise you as to what you must do to have the debt taken care of. In most all cases, there is a way to either include a portion of the tax in the bankruptcy or have a portion of the debt forgiven. Do try to work this out prior to your bankruptcy court date. This is often a difficult process that involves several people. Paperwork has to be filed and documentation must be completed to resolve the debt. Give yourself time to complete each process. It will be well worth the time involved to resolve the debt. Bankruptcy may be your best option.