Delaware

Share

Guide to Resolving Delaware Back Taxes & Other Tax Problems

  • Possibly Settle Back Taxes for Less
  • Stop Wage Garnishment and Bank Account Levy
  • Remove IRS & Delaware Tax Penalties
  • Stop Delaware & IRS Tax Liens
  • Settle Payroll Taxes
  • File Delinquent Delaware & IRS Returns
  • Connect with a team of Tax Attorneys & CPAs
  • Help with State & IRS Audits
  • Receive Free Consultation & Likely Outcomes
  • Receive Free no Obligation Competitive Quote

In the state of Delaware, individual and business tax filings are regulated by the Revenue Division of the Department of Finance. The Revenue Division reviews tax returns for errors, issues refunds and investigates situations involving the potential underpayment of taxes.

If you’ve received a notice from the Delaware Revenue Division advising you that you owe back taxes, you need to know what your payment options are. Delaware taxpayers can seek relief by making regular payments through an Installment Agreement or make an Offer in Compromise (OIC) to settle their tax bill for less.

Making Installment Payments

If you have the means to pay your Delaware back taxes but just need more time to do so, you can negotiate an installment agreement with the Department of Revenue. The length of your payment plan is generally determined by the amount of taxes you owe. If you can’t pay your entire tax bill at once, you should call the collections office at (302) 577-8586 to discuss your options.

You can also send a written request for an installment plan to the Department of Revenue. Written requests should include a copy of your tax bill, your name, taxpayer identification number and the tax period for which you owe. You may be asked to complete a Collection Information Statement, which includes information about your income, assets and expenses. The DOR will use the information you provide to determine how much your monthly payments will be under the installment plan.

Delaware Offer in Compromise (OIC)

In cases where paying off the tax, liability is hindered by accruing interest and penalties, Delaware taxpayers used to have the option of making an Offer in Compromise (OIC). However, recently, we are unable to find anything regarding an OIC on Delaware’s Department of Revenue website.

Delay Collection Action (Hardship)

In some instances, Delaware’s Division of Revenue may allow a temporary delay of collections until taxpayers have their financial situation improve. Unfortunately, interest and penalties on the liability will continue to accrue. Moreover, the state may file a Notice of Judgement (basically a tax lien) which gives creditors public notice that the government has a claim against your property before and after it is filed.  

If You Fail to Pay

If you do nothing to resolve your Delaware back tax situation, the Department of Revenue could pursue any or all of the following actions against you:

  1. Filing a Notice of Judgment
  2. Serving a Notice of Warrant
  3. Seizing your personal property, real estate or business property
  4. Notify payers of your interest and dividend income to begin backup withholding
  5. Assess a 100% penalty against you if you owe withholding taxes

In the short term, you could be subject to wage garnishment or a bank account levy to satisfy the taxes owed. In the long-term, any future tax refunds owed to you could be seized by the DOR and your credit rating will suffer until the judgment has been removed.

For Additional Tax Assistance

If you have questions about how to resolve your tax situation, you can contact the Delaware Department of Revenue at the phone numbers listed below:

  • Personal Income Tax Assistance: (302) 577-8200
  • Business Tax Assistance: (302) 577-8205
  • Collections/Account Management: (302) 577-8785
  • Installments: (302) 577-8586

All written requests may be sent to:

Delaware Division of Revenue
820 N. French Street
Wilmington DE 19801

Getting Professional Help to Resolve Your Tax Problems

BackTaxesHelp.com is one of the premier tax resolution sites serving Delaware, offering tax solutions for every individual’s unique financial situation. We created a strong and diverse team of tax professionals who will settle, file, reduce and resolve State and IRS taxes. All of our tax professionals will provide you with a free consultation to give you your options and likely outcomes.

Sign up For your free consultation today!

Our Simple Tax Relief Process

Delaware Tax Professional

Fill out the form below or call 1-800-928-5035 to receive a free consultation from a tax specialist. Connect with a tax attorney, CPA, enrolled agent or another tax professional for your unique tax situation.