Delaware Final Notice: Intent to Enforce Checklist
A Final Notice from the Delaware Division of Revenue is a formal state document indicating that a tax issue has not been resolved through earlier notices and collection attempts. This notice typically appears after initial notices have been sent and deadlines have passed without response or payment. It represents a significant step in Delaware's tax enforcement process, indicating that the state is preparing to take additional collection action if the issue is not addressed.
Understanding what this notice means and what typically follows helps you respond appropriately and understand your options. Failing to address this notice can result in serious consequences, including wage garnishment, asset liens, or bank levies. This document explains what a Final Notice means, why it is issued, and what steps to consider taking after receiving it.
What This Issue Means
A Final Notice is a formal warning that the Division of Revenue is about to take collection action on an unpaid tax debt or unresolved compliance issue. It indicates that previous notices were sent, but the taxpayer did not respond, pay, or resolve the underlying problem. This notice is typically issued after a period of time has passed with no contact or resolution from the taxpayer.
It represents the final administrative step before more aggressive collection methods are used, including filing a Notice of Judgment or issuing a notice of garnishment. The state maintains records of all unpaid tax obligations and tracks communication attempts
with taxpayers. Once this notice is issued, enforcement actions may begin quickly if no response is received.
Why the State Issues This Notice
Delaware issues a Final Notice when a tax liability remains unpaid or unresolved after earlier attempts to collect or gain compliance have failed. Common reasons include an unpaid tax bill, an unfiled tax return that was required, or incomplete payment of taxes owed. The state may also issue this notice if previous notices were not answered or if a taxpayer failed to meet a deadline stated in an earlier notice.
According to Delaware's tax administration practices, this notice is part of the standard escalation sequence when collection or compliance efforts have not succeeded. The
Division of Revenue sends notices to the taxpayer's last known address on file. If you have recently moved, it is crucial to update your address with the state to ensure you receive all official correspondence.
What Happens If This Notice Is Ignored
If a Final Notice is ignored and no action is taken, the Division of Revenue may proceed with enforcement actions. These actions may include filing a Notice of Judgment with the county prothonotary in New Castle County, Kent County, or Sussex County, which creates a public lien on your property. The state may also issue a notice of garnishment to seize wages or bank accounts.
Under Delaware Code Title 30, the Division of Revenue has legal authority to garnish bank accounts and wages, levy assets, or pursue offset of tax refunds. Once enforcement action begins, the cost and complexity of resolving the issue typically
increase. A Notice of Judgment, once filed, becomes a matter of public record and will harm your credit rating, potentially affecting your ability to obtain credit card companies ' approval or other financial services.
What This Does NOT Mean
A Final Notice does not mean that legal action in court has been filed or a judgment has been entered against you. It does not automatically imply that your wages will be garnished or your property will be seized immediately. It also does not mean that your case is beyond resolution or that you have no options.
This notice is still an administrative action, not a court proceeding, and the state is informing you of its intent to enforce before taking additional steps. Unlike phishing scam communications that attempt to steal personal information through fake links or malicious code, legitimate notices from the Delaware Division of Revenue will always include specific case information and official contact numbers.
Protecting Your Personal Information
When responding to any notice claiming to be from the Delaware Division of Revenue, verify its authenticity before providing any personal information or financial information.
Legitimate state notices will never ask you to provide your social security number, credit card details, or bank account information via text messages or unsolicited email. The
Division of Revenue does not use SMS phishing scams or send unsolicited packages.
If you receive suspicious communications claiming to be from Delaware tax authorities, contact the Division of Revenue directly at their official phone numbers to verify the notice before responding. Be cautious of social engineering tactics where scammers
impersonate government officials. You can report suspected fraud to the Federal Trade
Commission or the FBI's Internet Crime Complaint Center.
Checklist: What to Do After Receiving This Notice
Follow these steps if you have received a Delaware Final Notice from the Division of
Revenue.
Step 1: Locate and Read the Notice Carefully
Find the notice you received and read it thoroughly, including all dates, dollar amounts, and instructions. Make a note of any specific deadline mentioned in the notice. Check the notice for contact information, case number, or reference number. Keep the notice and any attached documents in a safe place where you can easily access them.
Step 2: Understand What the Notice Says You Owe
Identify the tax type (state income tax, gross receipts tax, withholding tax, etc.). Note the
specific tax year or period involved. Write down the dollar amount listed as owed, including any penalties and interest shown.
Verify whether the notice pertains to a single tax year or multiple years. Verify that you recognize this debt or understand why it is being listed. Review the bottom of this page for additional instructions or essential details about your case.
Step 3: Gather Copies of Previous Notices
Look for any earlier notices you received about this tax issue. These may include initial billing notices, Tax Advisory Notices, or payment due notices. Collect any correspondence from the Division of Revenue about this debt.
Keep all documents together in one place, organized in chronological order. These earlier notices may contain information about deadlines or previous payment requests that provide context for the current Final Notice.
Step 4: Review Your Tax Filing and Payment History
Check your records to see if you filed a tax return for the year in question. Look for copies of returns you submitted to Delaware. Verify whether you made any payments toward this debt.
Note the date and amount of any payments you made. If you believe you already paid this debt, locate proof of that payment, such as cancelled checks, bank statements, or payment confirmation receipts.
Step 5: Contact the Division of Revenue
Call the Delaware Division of Revenue Collections department at (302) 577-8785 for collections and account management issues. If you need to arrange a payment plan, call the Installments section at (302) 577-8586. Provide them with your case number or reference number from the notice.
Ask them to explain the debt and confirm what is owed. Take notes on what they tell you, including the name of the person you spoke with and the date. If calling from Kent
County or Sussex County, you may also use the toll-free number 1-800-292-7826.
Step 6: Determine Your Response Options
Based on your conversation with the state, determine whether you believe the debt is correct. If you think the amount is incorrect, contact the state to determine the steps you
can take to dispute it. If you believe you already paid, ask how to submit proof of that payment.
If you owe the debt and can afford to pay it, ask about available payment options or arrangements. Ask whether you can request a payment plan if you are unable to pay the full amount at once. The Division of Revenue may offer installment agreements to taxpayers who demonstrate a good-faith effort to resolve their obligations.
Step 7: Gather Documentation to Support Your Position
If you dispute the debt, collect documents that support your position. This may include copies of filed tax returns, payment records, bank statements showing payments, or correspondence with the relevant state authorities. Organize these documents in order by date.
Prepare a list that identifies what each document reveals and how it supports your position. Make copies of everything you plan to send to the state; never send original documents through the mail.
Step 8: Submit Your Response Before the Deadline
Suppose the notice includes a deadline for response; calendar that date prominently.
Prepare your written response to the state, clearly stating your position. Include a cover letter explaining what you are submitting and why.
Attach copies (not originals) of supporting documents. Submit your response according to the instructions on the notice, whether that is by mail, online, or in person. Keep a copy of everything you submit, including the date and method of delivery, for your records.
Step 9: If You Can Pay, Arrange Payment
If you determine that you owe the debt and can pay it, contact the Division of Revenue to discuss payment methods. Ask whether you can pay by check, electronic transfer, or credit card. If you cannot pay in full, ask about setting up a payment plan or installment agreement.
Request written confirmation of any payment plan or agreement made. Payment arrangements typically require regular monthly payments until the debt is satisfied.
Ensure you understand all terms before committing to a contract.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 10: Document All Communication
Keep a record of every contact you have with the Division of Revenue. Write down the date, time, person's name, and what was discussed or agreed upon. Save copies of all emails sent to or received from the state.
If you pay, keep proof of that payment indefinitely. If you submit documents, keep copies and a record of when they were sent and how they were delivered. This documentation becomes critical if disputes arise later about what was communicated or agreed upon.
What Happens After You Respond or Take Action
After you respond to a Final Notice, the Division of Revenue will review your submission or payment. If you paid the debt in full, the state typically issues a receipt or confirmation. The enforcement action may be suspended or halted if payment is received.
If you submitted a dispute or supporting documents, the state will review your materials and may conduct further investigation. The state will typically send you a written notice
of its determination. If you arranged a payment plan, the state should provide you with written confirmation of the payment schedule and terms, including the amount of each payment and the due dates.
Common Mistakes to Avoid
Do not miss the deadline in the notice. If the notice specifies a deadline for response or payment, mark it clearly on your calendar and respond well before that date. Late responses are less likely to stop enforcement action.
Do not ignore the notice entirely. Even if you dispute the debt or believe it is incorrect, contact the state to explain your position. Silence is treated as non-cooperation and is used to justify the state's move forward with enforcement.
Do not send incomplete information. If you submit documents to dispute the debt, include complete explanations and all relevant paperwork. Always keep copies of everything you send to the state; do not mail original documents.
Do not assume the debt will disappear. While Delaware has a 10-year statute of limitations for tax collection under Delaware Code Title 30 Section 553, you cannot simply wait for tax debts to expire without consequences. The state can take enforcement action during this period, and certain events can extend the collection period.
Understanding Delaware's Collection Timeline
Delaware law provides the Division of Revenue with 10 years from the date an assessment becomes final to collect tax debt. This period may be extended by written agreement between the taxpayer and the Division of Revenue or suspended during
bankruptcy proceedings. During this time, the state retains the legal authority to pursue collection through garnishment, liens, and other enforcement methods.
The 10-year collection period begins when the assessment becomes final, not when the tax return was originally due. Understanding this timeline helps taxpayers plan their response and understand the urgency of resolving outstanding tax obligations.
Frequently Asked Questions
Does receiving a Final Notice mean I have been taken to court?
No. A Final Notice is an administrative action by the Division of Revenue. It is not a court judgment or legal action. Court action may be initiated later if the matter is not resolved; however, this notice alone does not constitute a court proceeding.
Can I dispute the debt after receiving a Final Notice?
Yes. Even after receiving a Final Notice, you can dispute the debt if you have evidence to support your position. Contact the state to explain your dispute and provide documentation. Disputes are typically reviewed before enforcement action proceeds, but you must act promptly.
What if I am unable to pay the full amount owed?
Contact the Division of Revenue at (302) 577-8586 to ask about payment plans or installment agreements. The state may work with you on a payment arrangement if you demonstrate good faith willingness to pay. Be prepared to provide information about your financial situation.
Who can represent me in dealing with the Division of Revenue?
You may represent yourself or have an attorney, certified public accountant, enrolled agent, or any person enrolled to practice before the Delaware Division of Revenue represent you. To authorize another person to access your Delaware tax information, you must complete Delaware Form ATH-RTF (Authorization to Release Tax
Information). Delaware does not accept IRS Form 2848 for state tax purposes.
What does it mean if the notice mentions garnishment?
Garnishment means the Division of Revenue can order your employer or bank to withhold money from your wages or accounts to pay your tax debt. Under Delaware law, the state can issue a notice of garnishment to collect unpaid taxes. This action can significantly impact your financial stability and should be avoided by responding to notices promptly.
Facing State Tax Enforcement Action?
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