Delaware Tax Help Information
You may be able to pay your tax liability in installments if you cannot pay the initial tax in full. If the payment plan is long enough, you may need to have payment deducted from your wages or your financial institution to keep the State from filing a lien. The State is obligated to protect its interests, so you will need to comply closely with the terms of any agreement you make with them, lest you incur further penalties or an enforced collection process.
Notice of Judgement
If you fail to pay or fully pay your taxes, you may receive a Notice of Judgement, which will be attached to your property and rights thereto. A judgement is a public document, and thus can harm your credit rating. The State will release the Judgement within 30 days of your paying or otherwise addressing your liability and associated penalties.
Power of Attorney
While you may represent yourself before the State Division of Revenue, you may also authorize an attorney, public accountant, enrolled agent, or another such individual to represent you. As this will require them to have access to your tax information, you will need to submit the appropriate documentation.
The State Division of Revenue may seize and sell any of your real or personal property if you do not pay or otherwise fail to address your taxes. A public notice of pending sale will be issued, and the sale will occur ten days later unless the property seized is perishable.
Priority One: Stopping Aggressive Enforced Collections
One means of enforced action that the State may take to resolve delinquency is a levy on your bank account. The state of Delaware will issue a warrant to your bank and take up to the amount stated on the warrant directly from your accounts.
If you do not pay or make arrangements to pay your liability, the State may attach your wages to a warrant. This will mean garnishment of your wages, a reduction in disposable income as a means of paying your liability over time.
Offers in Compromise
Assuming proper qualifications, you may be able to arrange an offer in compromise with the State. This requires honest doubt regarding either your own liability or the collectability of your owed tax and any associated penalties.
The Division of Revenue may pursue an enforced collection if you do not voluntarily pay your taxes. This may mean issuing a warrant, which gives them legal authority to seize property or financial resources in order to fulfil your tax liability. Three things must happen in order for this to occur:
- They must assess your tax and issue a Demand for Payment
- You must fail to pay the tax
- They must issue a Notice of Judgement ten days prior to the warrant
It is important to note that certain circumstances will enable immediate action on the part of the State, regardless of the above criteria being met, i.e. if you are leaving the country imminently.
If you complete the appropriate documentation, you may have a qualified representative to stand in for you before the State.