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.
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.
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.
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 do nothing to resolve your Delaware back tax situation, the Department of Revenue could pursue any or all of the following actions against you:
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.
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:
All written requests may be sent to:
Delaware Division of Revenue
820 N. French Street
Wilmington DE 19801
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