If you filed a tax return, in IRS audit, and no fraud was determined then there does come a point when you can include the tax bill amount in the bankruptcy and have the debt discharged.  Once you do this, the IRS can no longer attempt to collect the tax bill and must stop any proceedings accordingly.  The Bankruptcy code sections 523 and 527 permits IRS tax to be included and discharged in some situations.  Tax penalties for non-filing, late payments, late deposits, and tax penalties for late estimated payments can usually be included and discharged.  Additionally, income tax, excise tax, and gift tax which is three years old is usually acceptable to be included in you bankruptcy filing.  The key here is that the aforementioned must have been filed at least two years prior to the bankruptcy petition and/or it must have been assessed as an IRS Audit deficiency for at least 240 days.