Delaware Notice of Tax Assessment Checklist
A Delaware Notice of Tax Assessment is an official letter from the Delaware Division of Revenue telling you that the state has calculated a tax amount you owe based on a review of your tax return or tax account. This notice matters because it officially documents what Delaware believes you owe, and responding to it correctly helps you resolve the situation accurately and on time.
If you ignore this notice or miss the statutory deadline to respond, the state can take enforcement actions that are harder to reverse, including wage garnishment, bank account seizure, or liens on your property.
What This Notice Means
The Delaware Division of Revenue has reviewed your tax return or account and has determined that you owe a specific amount of state income tax, sales tax, or other state tax. The notice will show the tax year in question, the type of tax being assessed, the amount owed, and the reasons for the assessment.
This notice is an administrative determination by the state and represents the formal assessment stage of the tax collection process. Delaware law refers to this as a notice of proposed assessment, which becomes a final assessment if you do not respond within the statutory timeframe.
Why the State Sent This Notice
The state sends these notices for several common reasons. You may not have filed a required tax return, or you filed a return, but the state believes you reported an incorrect amount of tax credit or income. In some cases, the state's computer system detected a discrepancy between your reported income and the information provided by employers or financial institutions.
The state may also have conducted a routine review or audit of your account. The Delaware Division of Revenue generates these notices as part of its regular tax administration when its records indicate a discrepancy.
Understanding Your 60-Day Protest Deadline
Delaware law establishes specific statutory deadlines for protesting a notice of proposed assessment. You have 60 days from the date the notice was mailed to file a written protest with the Director of Revenue. For withholding taxes, the deadline is 30 days. If you are outside the United States, the deadline is 120 days for certain taxes imposed by Chapter 11 of the Delaware Code.
These deadlines are established by Delaware Code, Title 30, Section 523, and apply regardless of what any particular notice may state. Missing this deadline means the proposed assessment becomes a final assessment, and you lose your right to challenge it through the administrative appeal process.
If you file a written protest within the 60-day window, you can request an oral hearing with the Director. The Director will reconsider the proposed assessment and issue a notice of determination. That determination itself has another 60-day window (30 days for withholding taxes, 120 days if outside the U.S. for certain taxes) during which you can appeal to the State Tax Appeal Board if the determination is adverse to you.
What Happens If You Ignore This Notice
If you do not respond to a Delaware Notice of Tax Assessment within the statutory 60-day deadline (30 days for withholding taxes, 120 days if outside the U.S. for certain taxes), the proposed assessment becomes final. Once final, the state will typically proceed with collection enforcement under Subchapter III (Procedure and Enforcement) of the Delaware Code.
This may include sending additional notices or bills, placing a lien on your property, garnishing your wages, or seizing funds from your bank account. The state may also refer your account to a collection agency or pursue legal action to collect the debt.
Delaware Laws establish clear timeframes for these processes, and treating the 60-day protest deadline as firm is critical to preserving your appeal rights.
What This Notice Does Not Mean
This notice does not mean you are being prosecuted for a crime or that criminal charges have been filed against you. It does not mean the state has automatically seized your property or frozen your accounts; these are separate enforcement actions that may occur later if the debt remains unpaid. It also does not mean you have no right to dispute the assessment.
Delaware law provides taxpayers with the statutory right to file a written protest within 60 days and request an oral hearing. Understanding and exercising these rights is essential to challenging an assessment you believe is incorrect.
Delaware's Multi-Stage Tax Appeal Process
Delaware's tax appeal process involves multiple stages, each with its own deadline. First, you file a written protest with the Director of Revenue within 60 days of the notice of proposed assessment. Second, the Director issues a notice of determination after reviewing your protest, which becomes final 60 days after issuance unless you appeal. Third, you can appeal the Director's adverse determination to the State Tax Appeal Board by filing a petition within that 60-day window.
Fourth, you can seek judicial review of the Tax Appeal Board's decision by appealing to the Delaware Superior Court within 30 days. Understanding these multiple stages is essential for preserving your appeal rights at each level of the appeals process.
Checklist: What to Do After Receiving a Delaware Notice of Tax Assessment
Step 1: Read the Notice Completely and Note the Mailing Date
Read the notice from start to finish, including all pages and any attachments. Identify the date the notice was mailed (not the date you received it). Write down the tax year or tax periods, the type of tax (Personal Income Tax, Corporate Income Tax, withholding taxes, retail marijuana taxes, or other state taxes), the amount assessed, and calculate your 60-day protest deadline from the mailing date. For withholding taxes, your deadline is 30 days; if you are outside the United States for certain taxes under Chapter 11, you have 120 days to file. These statutory deadlines are established by Delaware law and are critical to preserving your appeal rights.
Step 2: Gather Your Records Related to the Tax Year
Collect your original tax return (whether filed individually or as a joint return), W-2s, 1099s, receipts, canceled checks, and any other supporting documentation you filed or kept for that tax year. If you filed as a pass-through entity, gather all relevant documentation for the entity. If you did not file a return or filed a voluntary tax return, gather income documents from that year. Having complete records helps you evaluate whether the assessment is correct and prepare your protest if needed.
Step 3: Compare the Notice Against Your Records
Review the income figures, deductions, credits, and penalties listed on the notice. If the assessment relates to a claim for credit or refund that was disallowed, review your original claim. Write down any items that do not match your records or that you do not understand. Identify specific discrepancies you can document with evidence. If you made estimated payments during the tax year, verify that those were credited correctly.
Step 4: Decide Whether to Protest the Assessment
If you believe the assessment is correct, you can proceed directly to payment or contact the Division of Revenue to discuss payment plan options. If you believe the assessment is incorrect or have questions about how it was calculated, you should file a written protest within the 60-day statutory deadline. Delaware law gives you the right to protest and request an oral hearing with the Director of Revenue.
Step 5: File Your Written Protest Within 60 Days
If you are protesting the assessment, prepare a written protest that clearly states the grounds upon which your protest is based. Include your name, address, Social Security number or tax identification number, the tax year or tax periods, and a detailed explanation of why you believe the assessment is incorrect. Request an oral hearing if you want the opportunity to present your case in person.
Mail your written protest to: Division of Revenue, State of Delaware, Post Office Box 8714, Wilmington, DE 19899-8714. Send it by certified or registered mail so you have proof of the mailing date and delivery.
Step 6: Access Taxpayer Services and Resources
The Delaware Division of Revenue provides various Taxpayer Services to assist you. You can access the Delaware Taxpayer Portal online to view your account information, make payments, and manage your tax matters. If you need assistance understanding the assessment or the tax appeal process, contact the Division of Revenue using the phone number on your notice or visit their website for additional resources. If you work with a paid tax preparer, they can also assist you in preparing your protest and navigating the appeals process.
Step 7: Contact the Division of Revenue About Payment Options
If you cannot pay the full amount immediately, contact the Delaware Division of Revenue before the deadline passes. The Division provides information about payment options and arrangements through its Collections section. You can call (302) 577-8785 for Collections and Account Management or use the contact information on your bill. The Division of Revenue is available to assist taxpayers experiencing hardship who are unable to pay in full.
Step 8: Wait for the Notice of Determination
After you file your protest, the Director will review it and issue a written notice of determination. This determination will be mailed to you by certified or registered mail and will set forth the Director's findings of fact and the basis of any determination that is adverse to you. The Director's determination becomes final 60 days after it is mailed (30 days for withholding taxes, 120 days if outside the U.S. for certain taxes) unless you appeal to the Tax Appeal Board within that timeframe.
Step 9: Appeal to the Tax Appeal Board If Needed
If the Director's determination is adverse to you and you still disagree, you have the right to appeal to the State Tax Appeal Board. You must file a petition with the Tax Appeal Board within 60 days (30 days for withholding taxes, 120 days if outside the U.S. for certain taxes) from the date the Director's notice of determination was mailed.
The Tax Appeal Board will hold a formal hearing, which is open to the public, and issue a decision. All Tax Appeal Board decisions are posted online. The Board's review provides an independent evaluation of your case separate from the Division of Revenue.
Step 10: Preserve Your Right to Judicial Review
If the Tax Appeal Board's decision is unfavorable and you wish to continue your appeal, you have the right to seek judicial review by appealing to the Delaware Superior Court. You must file your notice of appeal in the office of the Prothonotary within 30 days after the date of the order entered upon the Tax Appeal Board's decision.
The Tax Appeal Board may extend this time for an additional 30 days or until disposition of any motion for rehearing. This final stage of the appeals process provides judicial oversight of the administrative determinations.
Step 11: Document Everything
Keep copies of all documents you send to the state and record the date you sent them. Save all correspondence you receive from the Division of Revenue, the Director, the Tax Appeal Board, and any other state agency. Create a file with your original notice, your protest letter, the notice of determination, any hearing materials, and all related documents. This documentation is essential if your case proceeds through multiple appeal stages and becomes particularly important if you need to seek judicial review.
Common Mistakes to Avoid
● Do not ignore the notice or delay responding while you decide on a course of action. The 60-day statutory deadline runs from the date the notice is mailed, not from the date you choose to act.
● Do not miss the 60-day protest deadline. Missing this deadline means the proposed assessment becomes final, and you lose your administrative appeal rights under the Tax Appeal Process.
● Do not send a protest without clearly stating the grounds for your protest and including supporting documentation. Your protest should specifically address why you believe the assessment is incorrect with reference to specific tax periods, income amounts, or credits.
● Do not assume you have more time than the statute allows. Delaware law establishes strict deadlines: 60 days for most taxes, 30 days for withholding taxes, and 120 days for certain taxes if you are outside the United States.
● Do not fail to request an oral hearing if you want the opportunity to present your case in person. You must request this in your written protest to the Director of Revenue.
● Do not send your protest by regular mail without proof of mailing. Always use certified or registered mail to document when you mailed your protest and when it was delivered.
Frequently Asked Questions
What if I filed my Delaware tax return, but the notice says I did not?
Contact the Delaware Division of Revenue directly and provide proof that you filed, such as a copy of your return or a filing receipt. The state's records may not have been updated yet, or your return may have been misplaced. You should still file a written protest within 60 days to preserve your rights.
Can I request a payment plan if I am unable to pay the full amount?
Yes. Delaware allows payment arrangements in many cases. Contact the Division of Revenue at (302) 577-8785 (Collections and Account Management) to discuss your situation and inquire about available options. The Division's website states that they are available to work with taxpayers who cannot pay in full.
If I request a hearing, do I have to go in person?
If you request an oral hearing in your written protest, the Director shall grant you or your authorized representative an oral hearing. If you later appeal to the Tax Appeal Board, those hearings (formal hearings) are open to the public and held in person. However, you may be represented by an authorized representative such as an attorney or CPA.
How long do I have to file my protest?
Delaware law gives you 60 days from the date the notice of proposed assessment was mailed (30 days for withholding taxes, 120 days if you are outside the United States for certain taxes under Chapter 11 of the Delaware Code). This deadline is established by Delaware Code, Title 30, Section 523, and is strictly enforced.
What happens after I file my protest?
The Director will reconsider the proposed assessment and issue a written notice of determination, which will be mailed to you by certified or registered mail. If the determination is adverse to you, you have another 60 days (30 days for withholding taxes, 120 days if outside the U.S. for certain taxes) to appeal to the Tax Appeal Board.
Does this process apply to property tax assessments?
No. This checklist addresses state income tax, Corporate Income Tax, withholding taxes, retail marijuana taxes, and other state taxes administered by the Delaware Division of Revenue under Title 30 (State Taxes) of the Delaware Code. County assessment offices handle property tax assessments and follow different appeal procedures.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
