Note: You will not need to read this section if you have already paid your tax or if you have made arrangements. Please note that before we take any of the actions explained in this section, we try to contact you and give you the opportunity to pay voluntarily.
If you do not take some action to pay your tax bill, we may take any of the following actions:
- File a Notice of judgment;
- Serve a Notice of Warrant;
- Seize and sell your property (personal, real estate, and business property);
- Notify payers of your interest and dividend income to begin backup withholding; or
- Assess 100 percent penalty if you owe withholding taxes.
These actions are referred to as Enforced collection Actions; because they are the means by which the Division of Revenue can enforce the notice and demand for tax.
Notice of Judgement
This section gives information to help you understand what a judgment is, how it affects your credit rating and how it is released.
Before the Division of Revenue files a Notice of judgment, three requirements must be met: The Division of Revenue must assess the tax, or be self-assessed by the taxpayer (i.e., filing a timely return without paying or partially paying);The DE DOR must send you a notice and Demand for payment; and You must neglect or refuse to pay the tax or Otherwise resolve your tax due problems.
Once these requirements are met, a judgment is created for the amount of your tax debt. This judgment attaches to all your property (such as your house or car) and to all your rights to property (such as your accounts receivable).
A judgment is not valid against the claims of other creditors until the Division of Revenue files a Notice of judgment with an appropriate official to establish priority status among these creditors. An example of this is filing a judgment in the county where you own property or in the state where you conduct business.
By filing a Notice of judgment, the Division of Revenue is providing a public notice to your creditors that the Government has a claim against all your property, including property that you acquire after the lien was filed.
Caution: Once filed, a judgment will harm your credit rating.
FAQs
If you do not take some action to pay your tax bill, we may take any of the following actions: File a Notice of judgment; Serve a Notice of Warrant; Seize and sell your property (personal, real estate, and business property);
What if I fail to pay my taxes? ›
Penalty and Interest
There is a 10 percent penalty for not filing your return and/or paying your full tax or fee payment on time. However, your total penalty will not exceed 10 percent of the amount of tax for the reporting period.
Do you have to pay state income tax in Delaware? ›
Delaware has a graduated state individual income tax, with rates ranging from 2.20 percent to 6.60 percent. There is also a jurisdiction that collects local income taxes. Delaware has an 8.70 percent corporate income tax rate and a state gross receipts tax. Delaware does not have a state sales tax rate.
Why don t people pay taxes in Delaware? ›
Delaware is particularly attractive to financial companies, due to its business-friendly usury laws and light taxation. A Delaware corporation can base its headquarters in any U.S. state, where it is then exempt from state corporate income tax in many cases.
What is the consequences of not paying taxes? ›
The failure to pay penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty won't exceed 25% of your unpaid taxes.
What happens if I haven't paid my taxes? ›
If you filed on time but didn't pay all or some of the taxes you owe by the deadline, you could face interest on the unpaid amount and a failure-to-pay penalty. The failure-to-pay penalty is equal to one half of one percent per month or part of a month, up to a maximum of 25 percent, of the amount still owed.
What happens if you don't make enough to pay taxes? ›
An extension to pay: You can ask the IRS for up to 120 days to pay your tax bill. Payment plans: If you're wondering, “Do I have to pay my taxes all at once?”, the answer is no — with a payment plan, you can spread out your IRS payments.
What happens if you can't afford to pay your taxes? ›
If you find that you cannot pay the full amount by the filing deadline, you should file your return and pay as much as you can by the due date. To see if you qualify for an installment payment plan, attach a Form 9465, “Installment Agreement Request,” to the front of your tax return.
What happens if you don't pay taxes for several years? ›
Penalties can include significant fines and even prison time. Luckily, the government has a limited amount of time in which it can file a criminal charge against you for tax evasion. If the IRS chooses to pursue charges, this must be done within six years after the date the tax return was due.
Who do I call about my Delaware state taxes? ›
Visit https://tax.delaware.gov to make an estimated tax payment by selecting the link on the right side of the portal login page titled “Submit and Estimated Payment”.
Do senior citizens get a discount on property taxes in Delaware? ›
About. Homeowners age 65 or over are eligible for a tax credit against regular school property taxes of 50 percent (up to $500).
What taxes are free in Delaware? ›
Doing Business in Delaware
Delaware does not impose a state or local sales tax, but does impose a gross receipts tax on the seller of goods (tangible or otherwise) or provider of services in the state.
At what age is Social Security no longer taxed? ›
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
Can I get a tax refund if my only income is Social Security? ›
You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.
What happens if you don't file an Annual Report with Delaware? ›
The penalty for not filing a completed Annual Report on or before March 1st is $200.00 Interest at 1.5% per month is applied to any unpaid tax balance. Notification of Annual Report and Franchise Taxes due are sent to all Delaware Registered Agents in December of each year.
What is the penalty for filing taxes late in Delaware? ›
Late-filed returns with a balance due are subject to a penalty of 5% per month of the balance due.
What is the redemption period in Delaware? ›
In general there is no right to redeem after the confirmation of the Sheriff's Sale. In Delaware, there is an exception that allows the owner to redeem within 60 days after the confirmation of Sheriff's Sale if the property was sold to collect delinquent county taxes.
What happens if you don't put your taxes? ›
Interest is charged on taxes not paid by the original due date, even if you have an extension of time to file or pay. Interest is also charged on penalties. There's no penalty for failure to file if you're due a refund.
