Delaware – Failure to Pay Taxes Will Result in License Revocation

SALT Report 1574 – With the passage of HB 257, the Delaware Director of Revenue is now authorized to deny or suspend any Taxpayer’s professional, business, or occupational license for failure to pay taxes when that amount exceeds $1,000.00.  “Failure to pay taxes” includes any additional debts such as interest and penalties or for any amount in which the Taxpayer has a judgment against them.

The Director will notify the Division of Professional Regulation to deny or suspend the license within 20 days of notifying the Taxpayer of the intent to deny or suspend unless:

  • The debt is satisfied in full
  • The Taxpayer has entered into a written agreement with the Director for payment of the debt, or
  • The Taxpayer has requested a hearing with the Division of Revenue
Once the debt has been paid in full, the debtor will remain ineligible for the issuance, renewal, or reinstatement of their license until the Director of Revenue provides certification to the DPR that the grounds for denial or suspension of the license no longer exists.
Additionally, the Division of Professional Regulation has entered into an agreement with the Director of Revenue to exchange information regarding any taxpayer that owes taxes to the State and who applies for, or holds, a license issued or renewed by any commission, board, or agency in the state.
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