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Declaring bankruptcy is the last method that can be used to solve the tax problem. But proper care must be taken if a person going to do this method because if IRS finds that you might have cheated them then severe actions always be taken against you. So, before choosing this method, consult a tax relief professional discover if this is the most suitable option for .

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Example: Mary, an American citizen, is single and lives in Bermuda. She earns an income of $450,000. Part of Mary's income will be subject to U.S. income tax at the 39.6% tax rate.

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