The Division of Revenue will issue a release of the Notice of Judgment within 30 days after you satisfy the tax due (including interest and other additions to the tax) by payment or adjustment.
In addition, you must pay all fees charged by a state for both filing and releasing the judgment. These fees will be added to the balance you owe.
Automatic Release of a Judgement
A judgment shall automatically continue for a period of 20 years from the date of its entry.
Special Release of Tax Judgement – Application for Discharge of Judgement Against Property
Each request for a discharge of a tax judgment releases the effects of the judgment against one specific piece of property , such as when you sell your home, you may request the discharge.
You may be discharged if any of the following circumstances apply:
- If you have other property, subject to the judgment, that is worth at least two times the total of the tax you owe, plus any additions to the tax you owe and any other debts you owe on the property, such as a mortgage.
- The DE DOR receives the value of the government’s interest in the property and you are giving up ownership.
- The property in question is being sold, and there is a dispute as to who is entitled to the sale proceeds, and the proceeds are placed in escrow while the dispute is being resolved.
When applying for a discharge, you must send your request to the Division of Revenue, Bureau of Tax Collections.
When the Delaware Division of Revenue Judgement is Secondary to Another Lien – Subordination
Subordination is made at the discretion of the Division of Revenue. It means that the Division of Revenue has allowed its judgment to take a lower place than someone else’s lien.
The Division of Revenue may let its judgment take a lower place than a “junior judgment”; (someone whose judgment originally had a lower place than the Division of Revenue judgment) if it receives the dollar value of the judgment in the property that the junior judgment is acquiring, for example, a second mortgage.
Incorrect Judgement – Your Administrative Appeal
You may appeal the filing of a Notice of judgment if you believe we filed the judgment in error. A judgment is incorrect if:
You paid the entire amount you owed the Division of Revenue before we filed the judgment.
We filed the judgment when you were in Bankruptcy and subject to the automatic stay during bankruptcy;
We made a procedural error in making an Assessment; or the time to collect the tax (called the statute of limitations) expired before we filed the judgment.
NOTE: You may not appeal this Notice of judgment if you are challenging the underlying debt that generated the filing of the judgment.
If we agree with your appeal, we will release the judgment within 14 days after we determine that the judgment was filed incorrectly. We will issue a statement of release of an incorrect judgment that includes a statement that we filed the Notice of judgment in error.