DIVISION OF REVENUE

TECHNICAL INFORMATION MEMORANDUM 98-3

JULY 14, 1998

SUBJECT: OFFSET OF STATE TAX REFUNDS FOR FEDERAL LIABILITIES

Senate Bill No. 347 of the 139th General Assembly, Amended by Senate Amendment No. 1, 71 Del. Laws. ch. 386, permits the setoff of state refunds for federal tax obligations provided the Director:

"finds, based on specific action of the United States Senate or House of Representatives or a Committee thereof, reason to believe the United States may extend a like comity for the collection of a tax debt owed to this State no later than January 1, 2001."

In fact, the IRS Restructuring Legislation, H.R. 2676, has passed both the House and the Senate and provides for reciprocal offsets by January 1, 2000.

This constitutes the finding required in 30 Del. C. 558(b)(10).

 

William M. Remington

Director of Revenue