SALT Report 1731 – The Delaware State Legislature passed a bill that allows the Division of Revenue to suspend the professional license of any taxpayer who fails to pay their outstanding tax liabilities. The Division estimates that professional licensees currently owe more than $10 million in outstanding tax liabilities to the state. The legislation is an attempt to stop those who fail to pay their taxes from unfairly competing against businesses that comply with their state tax requirements.
HB 257 provides that the Division of Revenue has the authority “to suspend Division of Professional Regulation licenses should the licensees fail to pay their overdue tax liabilities” and the following actions have taken place:
- The taxpayer received a judgment for unpaid taxes,
- The taxpayer was notified by mail that the state was in the process of taking further action, and
- The taxpayer was given 60 days to respond
Taxpayer’s may be excluded from the suspension if they enter into a payment agreement with the Division of Revenue, pay their balance in full, file for bankruptcy protection, or are in the process of appealing a liability.
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