Philadelphia, PA (PRWEB) March 16, 2011
We are sure everyone is preparing their business taxes to file and deciding on some difficult decisions they might have to make. Tax debt may seem insignificant at first but can then explode exponentially, leading to a seizure of assets, foreclosure, business closure, bankruptcy and even complete financial destruction. Tax debt left unaddressed will snowball into an all-consuming problem and viral threat to any individual or company’s financial state, indefinitely tarnishing their reputation and vitality. So the question is posed and answered if bankruptcy is the right choice for one to make.
The option to file bankruptcy is a right belonging to every American. According to Michael Ellis, CEO of Ellis PENN, “there are 5 basic rules or conditions to meet when filing Chapter 7 bankruptcy, the two most important being, no willful tax evasion and no commitment of fraud.” Licensed tax professionals will walk you through the rules and qualifiers step by step, which are crucial since there are so many tax lien complications when it comes to bankruptcy.
For example, one of the most common complications is the filing of federal tax liens. Of course if no federal lien is filed, you can be cleared easily. However, if there is a federal tax lien filed and you own real property, it typically attaches to the property and the bankruptcy doesn’t release it. You run the risk of getting a discharge for your personal responsibility to repay the tax, but having a lien attached to a house or property. As Michael Ellis says, “you need to be aware of the fact that if there’s a federal tax lien and you own real property and the tax lien is filed in the same county as the property; that creates a significant problem for your bankruptcy.” Bankruptcy is highly dependent upon state laws and state specific exemptions. Finding a local representative who is highly skilled in tax discharge ability rules is key.
Whether or not one gets involved in a bankruptcy filing, asset seizure is a huge threat regardless. When the IRS demands payment, they will take assets. As Michael Ellis has seen, “you may not have a lot left after they’re done taking your properties.” The assets most sought after by the IRS include: bank accounts, vehicles, boats, recreational vehicles, life insurance, accounts receivable, investments in stocks and bonds, wages, cash, real estate, pensions, IRAs and Keoghs and even one’s home. The right tax professional will aide in protecting assets that can be saved. Knowledge of state specific rules and exemptions can mean the difference between financial life and death.
When bankruptcy is the appropriate course of action, professional tax representatives offer the guidance necessary to complete a thorough and correctly filed case. The tax lien arbitration firm will become essential in regaining a positive financial position. This information might assist in the decisions businesses and individuals must be preparing to make. If your business owes the IRS more than $50,000 then contact Ellis PENN to see what positive decisions need to be made. For more information on how to handle tax debt issues or initiate the bankruptcy process, visit http://www.ellispenn.com. Watch the video and then call them to see if they can assist or read an informational blog from Michael Ellis of Ellis PENN at http://ellispenn.wordpress.com/ .