If you owe back taxes, bankruptcy can help, in many unexpected and powerful ways.
If you owe too much in taxes, a Chapter 13 case can protect your small business while you write off some and pay some of the taxes.
If you want to keep your business operating but owe too much in taxes, a Chapter 13 case will protect your business while buying you time.
Employee withholding taxes can't be written off in bankruptcy. But still, either Chapter 7 or 13 may provide your best solution.