DE DOR may, after notice, revoke or deny renewal of your business license if you have a delinquent balance in excess of $2500 that has remained unpaid for 180 days (after appeal periods). If you continue in business without a license you are subject to criminal prosecution or the issuance of an injunction by the Court of Chancery.


BANKRUPTCY


If You are involved in an on-going bankruptcy proceeding, contact your local DE DOR office. Provide them with the district (i.e. Delaware) the bankruptcy was filed, when it was filed, your bankruptcy case number, and who is representing you in your bankruptcy. If you have not filed all of your State tax returns you should do so. You will also need to keep your attorney advised as to the tax periods, amounts, and a recent breakdown of tax, penalty, and interest of any liabilities you have incurred.

Your filing of bankruptcy will temporarily stop DE DOR enforcement action to collect a debt related to tax periods that are pre-petition (i.e. before the bankruptcy petition was filed). You should pay in full or make the arrangements to satisfy all liabilities associated with tax periods that were post-petition (i.e. after the bankruptcy petition was filed). The DE DOR may continue to audit, demand tax returns and assess the tax for both pre-petition and post-petition taxes.

Dischargeability of your tax liability should be discussed with your attorney. In many instances, your tax liability, or a portion of it, may not be discharged. When you have identified that your taxes were not discharged by your bankruptcy, please contact your local DE DOR office to make arrangements to satisfy your tax debt, or a portion thereof, for which the DE DOR is continuing it's efforts to collect, please send a letter with a copy of your bankruptcy discharge explaining what portion of your liability is believed to be discharged. For a more detailed explanation of Bankruptcy please access the Bankruptcy Information link.


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