Tax Overview: Delaware
Delaware tax debts are handled by the Division of Revenue and can trigger liens, levies, and wage garnishments. The state does not offer an Offer in Compromise program. Installment agreements are available up to 48 months, with plans over 48 months triggering a judgment filing. Delaware has no state sales tax, so tax issues are primarily income-tax related.
Key Tax Facts
- No Offer in Compromise program — Delaware does not offer OIC
- Installment agreements up to 24 months without requiring auto-debit or judgment filing
- Plans of 24-48 months require automatic bank deduction or voluntary wage deduction to avoid a tax lien filing
- Plans over 48 months will result in a judgment being filed to protect the state's interest
- Written requests accepted — include tax bill copy, name, TIN, and tax period
- Hardship relief possible — contact the state directly
- No state sales tax — tax issues are primarily income-tax related
Common Tax Issues
No OIC means limited settlement options — resolution focuses on payment plans and hardship relief
Plans exceeding 48 months trigger formal judgment filings, which impact credit and public records
The 24-month threshold for auto-debit requirements can be a barrier for taxpayers preferring manual payments
Resolution Options in Delaware
Payment Plans (Installment Agreements)
Without financials: Up to 48 months
With financials: Up to 48 months
Up to 24 months without auto-debit. 24-48 months requires automatic bank deduction. Over 48 months triggers judgment filing.
Offer in Compromise (OIC)
Available: No
Delaware does not offer OIC.
Wage Garnishment
Rate: Varies
Can lift with payment plan: No
Can reduce amount: No
Penalty Abatement
Available: Yes
Bank Levy
Can release: No
Hardship / Currently Not Collectible
Available: Yes
Hardship relief possible — contact the state.
Official Resources
How Tax Advocate Group Helps Delaware Taxpayers
Whether you're dealing with the IRS, the Delaware Division of Revenue, or both — we provide comprehensive tax resolution services to Delaware residents and businesses.
