CHAPTER 187
FORMERLY
HOUSE BILL NO. 281
AS AMENDED BY HOUSE AMENDMENT NO. 1, AND SENATE AMENDMENT NOS. 1 AND 2
AN ACT TO AMEND TITLE 30 AND TITLE 4 OF THE DELAWARE CODE RELATING TO THE ADMINISTRATION AND ENFORCEMENT OF THE REVENUE LAWS OF THE STATE OF DELAWARE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three—fifths of all members elected to each House thereof concurring therein):
Section 1. Amend Part 1, Title 30 of the Delaware Code by adding thereto Subchapters I, II, III, and IV of a new Chapter 5 to read as follows:
"CHAPTER 5. PROCEDURE, ADMINISTRATION AND ENFORCEMENT Subchapter I. General Provisions
§501. Application of this chapter.
Except where in conflict with a specific provision within another chapter of this title or, where applicable, a specific provision of Title 4 or a rule of the Delaware Alcoholic Beverage Control Commission, this chapter shall govern the administration,procedures and enforcement of the State revenue laws provided for under Chapters 11, 13, 14, 15, 19, 20, 21, 23, 25, 27, 29, 30 33,41, 43, 53, 54, 55, 61 and 63 of this title; §§3004 and 3005 of Chapter 30 of this title; and subchapter VII of Chapter 5 of Title4.
§502. Definitions.
(a) Meaning of terms, in general. -- Any term used in this Chapter shall have the same meaning as when used in a comparable context in the internal revenue laws of the United States, unless a different meaning is clearly required or unless subsection (b) of this section ascribes a different meaning to such term. Any reference in this chapter to the internal revenue laws of the United States shall mean the Internal Revenue Code of 1986 [26U.S.C. §1, et seq.] and amendments thereto and other laws of the united States relating to federal taxes, as the same are or may become effective for the taxable year.
(b) Specific definitions.-- Whenever used in this title, the
following terms shall have the meanings ascribed to them in this subsection—
(1) 'State Tax Commissioner' means the Director of the Division of Revenue.
(2) 'Director' means the Director of the Division of Revenue or the Secretary of Finance of the State of Delaware.
(3) 'Division of Revenue' means the Division of Revenue of the Department of Finance of the State of Delaware.
(4) 'State Tax Department' means the Division of Revenue.
(5) 'Internal Revenue Service' means the Internal Revenue Service of the Department of Treasury of the United States of America.
(6) 'Deficiency' means, in the case of any tax imposed by this title or, where applicable, Title 4, the amount by which such tax so imposed exceeds the excess of--
(A) the sum of the amount shown as the tax by the taxpayer upon his return, if a return was made by the taxpayer and an amount was shown as the tax by the taxpayer thereon, plus the amounts previously assessed (or collected without assessment) as a deficiency, over—
(B) the amount of any abatements, credits or refunds made.
(7) 'Person' means and includes an individual, a trust,estate, partnership, association , company or corporation.
(1) 'Tax' shall be deemed also to refer to license fees imposed under Part III of this title.
(1) 'Title 4,' for purposes of this chapter, shall be deemed to refer only to subchapter VII of Chapter 5 of Title 4.
(2) 'Notice of proposed assessment' means a notice sent to a taxpayer by the Director or his delegate pursuant to §521(c)of this title that tax, Interest, penalty, additional amount, or addition to the tax is proposed for assessment and is due.
(3) 'This title,' except when used in reference to specific chapters, sections, or other provisions of Title 30, shall mean Title 30 of the Delaware Code, except §3003 and Chapters 51 and 52.
SUBCHAPTER II. RETURNS AND PAYMENT OF TAX §510. Due date of the return.
A return prepared in compliance with the provisions of any chapter of this title or, where applicable, Title 4, shall be due on the last day provided for under such provision, or upon such later date as the Director may permit pursuant to any extension of the time to file the return granted in accordance with this chapter.§511. Extension of time for filing and payment.
(a) The Director may grant a reasonable extension of time for the payment of any tax or estimated tax imposed by this title or by Title 4, or any installment thereof, or for filing any return,declaration, statement or other document.required, on such terms and conditions as the Director may require.If any extension of time is granted for the payment of any amount of tax, the Director may require the taxpayer to furnish a bond, or other security, in an amount not exceeding twice the amount of the tax for which the extension of time for payment is granted, on such terms and conditions as the Director may require.
(C) In the case of any return required under Chapter 13 or 15of this title, if a federal extension of time for the filing of a return is granted for federal estate tax purposes, then the time for filing such return required under Chapter 13 or 15 of this title shall be automatically extended for a like period, provided that a copy of the federal extension is furnished to the Director before or with the filing of such return.
(d) In the case of any return required under Chapter 14 of this title, if a federal extension of time for the filing of a return is granted for federal gift tax purposes, then the time for filing such return required under Chapter 14 of this title shall be automatically extended for a like period, provided that a copy of the federal extension is furnished to the Director before or with the filing of such return.
(e) This section shall not preclude or be administered so as to be in conflict with deferred payments under §5316(b) of this title.
§512. Signing of returns and other documents.
(a) Any return, declaration, statement or other document required to be made pursuant to this title or Title 4 shall be signed in accordance with rules or instructions prescribed by the Director. The fact that an individual's name is signed to a return,declaration, statement or other document shall be prima facie evidence for all purposes that such return, declaration, statement or other document was actually signed by such individual and that he signed the return with authority to do so on behalf of the taxpayer.
(b) The making or filing of any return, declaration, statement or other document, or copy thereof, required to be made or filed pursuant to this title or Title 4, including a copy of a federal return, shall constitute a certification by the person making or filing such return, declaration, statement or other document, or copy thereof, that the statements contained therein are true and that any copy filed is a true copy.
(c) The Director may require that any return or other writing required to be filed with respect to any tax imposed under authority of this title or Title 4 be signed by the maker of such return or writing under oath or affirmation, subject to the penalties of perjury.
§513. General requirements concerning returns; records and statements.
The Director may prescribe rules or regulations with respect to the keeping of records, the content and form of returns and statements and the filing of copies of federal returns and determinations. The Director may require any person, by regulation or notice served on such person, to make such returns, render such statements, or keep such records as the Director may deem sufficient to show whether or not such- person is liable under this title or Title 4 for the payment of any tax or for the collection of any tax.
§514. Report of change in federal tax liability.
If the amount of the taxpayer's federal income, estate, or gift tax liability reported on his federal tax return for any taxable period is changed or corrected by the Internal Revenue Service, or other competent authority, the taxpayer shall report to the Director such change or correction in federal tax liability within 90 days after the final determination of such change or correction and shall concede the accuracy of such determination, or state wherein it is erroneous. Any taxpayer filing an amended federal income, estate, or gift tax return shall also file, within 90 days thereafter, the appropriate amended tax return under this title and shall provide to the Director such additional information as the Director may require.
Subchapter III. Procedure and Administration §521. Examination of return.
(a) Deficiency or overpayment. -- As soon as practicable after any return is filed, the Director shall examine it to determine the correct amount of tax. If the Director finds that the amount of tax shown on the return is less than the correct amount, the director shall notify the taxpayer in writing of the amount of the deficiency proposed to be assessed. If the Director finds that the tax that has been paid by the taxpayer is more than the correct amount, the Director shall credit the overpayment against any taxes to which this chapter applies and which are due to this State by the taxpayer and shall refund the difference to the taxpayer.
(b) No return filed. -- If the taxpayer falls to file any return of tax required to be filed, the Director shall estimate from any available information the taxpayer's taxable amount, and the tax thereon, and shall notify the taxpayer in writing of the amount proposed to be assessed against the taxpayer as a deficiency.
(c) Notice of proposed assessment. -- A notice of proposed assessment shall (1) be in writing, (ii) state that tax, interest,penalty, additional amount, or addition to tax is proposed for assessment and is due, and (iii) set forth the amount and the reason for the proposed assessment. Such notice shall be mailed by the Director within the time limit provided by §531 of this title(by certified or registered mail if the amount of the proposed assessment exceeds $500) to the taxpayer at his last known address.In the case of a joint return of personal income tax, a notice of proposed assessment shall be a single joint notice, except that if the Director is notified by either spouse in writing that separate addresses have been established, the Director shall mail a joint notice to each spouse at each such address. In the case of a combined separate return of personal income tax, a single notice of proposed assessment shall be sent by the Director to the taxpayers' last known address except that, if the Director is notified by either spouse in writing that separate addresses have been established, the Director shall mail separate notices to each spouse, using reasonable means to allocate the proposed assessment between the spouses. If the taxpayer is deceased, under a legal disability or is a corporation which has terminated its existence,a notice of proposed assessment shall be mailed to such taxpayer's last known address, except that if the Director has received notice of the existence of a fiduciary relationship with respect to such taxpayer, such notice shall be mailed to the last known address of such fiduciary. Except where the Director determines that collection would be jeopardized by delay, no notice of proposed assessment of any tax shall be mailed prior to the last date,including any date fixed by extension, prescribed for the payment of such tax.
(d) Supplemental notice of proposed assessment. -- The Director may, at any time within the period prescribed for issuance of a notice of proposed assessment, issue a supplemental notice of proposed assessment, subject to the other provisions of this section, whenever it is found that any notice is imperfect or incomplete in any material respect. Any reference in this title to a notice of proposed assessment shall be deemed to include a reference to a supplemental notice of proposed assessment issued under the authority of this subsection.
§522. Assessment final if no protest.
Sixty days after the date on which it was mailed (thirty days in the case of a proposed assessment of withholding taxes, or, in the case of other taxes imposed by Chapter 11 of this title, 120days if the taxpayer is outside the United States), a notice of proposed assessment under §521(c) of this title shall constitute a final assessment of the amount of tax, interest, penalties, additional amounts and additions to the tax specified in such notice, excepting only those amounts as to which the taxpayer has filed a timely protest with the Director under §523 of this title.
§523. Protest by taxpayer.
Within sixty days (thirty days in the case of withholding taxes, or, in the case of other taxes imposed by Chapter 11 of this title, 120 days if the taxpayer is outside the United States) after the date of the mailing of a notice of proposed assessment under§521(c) of this title or the date of the mailing of a notice of the disallowance of a claim for credit or refund under §542 of this title, the taxpayer may file with the Director a written protest against the proposed assessment or disallowance in which the taxpayer shall set forth the grounds upon which the protest is based. If such a protest is filed, the Director shall reconsider the proposed assessment or disallowance of claim for credit or refund and, if the taxpayer has so requested, shall grant the taxpayer or his authorized representative an oral hearing.
§524. Notice of determination after protest.
Written notice of the Director's determination under §523 of this title shall be mailed to the taxpayer by certified or registered mail, and such notice shall set forth the Director's findings of fact and the basis of any determination which is adverse, in whole or in part, to the taxpayer.
§525. Determination of Director final. The determination of the Director under §524 of this title on the taxpayer's protest shall be final (and such determination shall constitute a final assessment of any amount determined by the director to be due) upon the expiration of sixty days (thirty days in the case of withholding taxes, or, in the case of other taxes imposed by Chapter 11 of this title, 120 days if the taxpayer is outside the United States) from the date when the Director mails notice of his determination to the taxpayer, unless within such period the taxpayer seeks review of the Director's determination pursuant to the provisions of §544 of this title.
§1. Burden of proof.
(a) In any proceeding before the Director under this chapter, the burden of proof shall be on the taxpayer, except with respect to the following issues, as to which the burden of proof shall be on the Director:
(1) Whether the taxpayer has been guilty of fraud;
(2) Whether the petitioner is liable as the transferee (within the meaning of §560 of this title) of property of a taxpayer (but not to show that the taxpayer was liable for the tax); and
(3) Whether the taxpayer is liable for any increase in a deficiency where such increase is asserted initially after the notice of proposed assessment under §521(c) of this title was mailed and a protest under §523 of this title was filed, unless such increase in deficiency is the result of a change or correction of federal tax liability required to be reported under §514 of this title and of which change or correction the Director had no notice at the time he mailed the notice of proposed assessment.
(b) In any proceeding before the Tax Appeal Board under this chapter, the burden of proof shall be upon the taxpayer, except with respect to the issues described in paragraphs (1) and (2) of subsection (a) of this section, as to which the burden of proof shall be on the Director.
§527. Evidence of related federal determination.
A federal administrative determination of issues raised in a proceeding under §523 or §544 of this title shall be admissible as presumptive evidence in such proceeding, but such determination shall not be conclusive.
§528. Mathematical error.
(a) If the amount of tax shown on the taxpayer's return is understated due to a mathematical or clerical error, the Director shall notify the taxpayer in writing that an amount of tax in excess of that shown on the return is
due and has been assessed. Each notice under this subsection shall
expressly state the error alleged. Such additional tax and any interest
thereon shall,subject to the right of protest under subsection (b) of this section, be deemed assessed on the date of filing or the due date of the return, whichever is later.
(b) Notwithstanding the provision for immediate assessment under subsection (a) of this section, a taxpayer may file with the Director, within sixty days after notice of the assessment is sent,a written protest of the assessment under the provisions of §523 of this title. In the taxpayer's
protest, he shall set forth the reasons he believes he has not made a mathematical or clerical error in the preparation of his return or calculation of the tax due.
§529. Time for performing certain acts postponed by reason of service in combat zone.
(a) In the case of an individual serving in the Armed Forces of the United States, or serving in support of such Armed Forces,in an area designated by the President of the United States by Executive order as a 'combat zone' for purposes of §112 of the Internal Revenue Code [26 U.S.C. §112], at any time during the period designated by the President by Executive order as the period of combatant activities in such zone for purposes of such sectlon,or hospitalized as a result of injury received while serving in such an area during such time, the period of service in such area,plus the period of continuous qualified hospitalization attributable to such injury, and the next 195 days thereafter,shall be disregarded in determining under this title (other than Chapters 30, 51 and 52), in respect of any tax liability (including any interest, penalty, additional amount, or addition to the tax)of such individual --
(1) Whether any of the following acts was performed within the time prescribed therefor:
(A) Filing any return of income, estate, inheritance or gift tax (except income tax withheld at source);
(B) Payment of any income, estate, inheritance or gift tax (except income tax withheld at source) or any installment thereof or any other liability to this State in respect thereof;
(C) Filing a protest with the Director under §523 of this title, filing a petition with the Tax Appeal Board under §544 of this title or filing an appeal of a decision rendered by the Tax Appeal Board under §331 of this title;
(A) Allowance of a credit or refund of any tax;
(A) Filing a claim for credit or refund of any tax;
(A) Assessment of any tax;
(G) Giving or making any notice or demand for the payment of any tax, or with respect to any liability to this State in respect of any tax;
(H) Collection of the amount of any liability in respect of any tax;
(I) Bringing suit or commencing any action, including the filing of any certificate or warrant, by this State or any officer on its behalf, in respect of any liability in respect of any tax; and
(J) Any other act required or permitted under this title (other than Chapters 30, 51 and 52) specified in regulations prescribed under this section by the Director;
(2) The amount of any credit or refund (including interest).
(b)(1) Except to the extent provided in paragraph (2) of this
subsection, subsection (a) of this section shall not apply for purposes of determining the amount of interest on any overpayment of tax.
(2) If an individual is entitled to the benefits of subsection (a) of this section with respect to any return and such return is timely filed (determined after the application of such subsection (a)), interest shall be allowed on any overpayment commencing with the forty-sixth day after the due date for the return (determined after the application of such subsection (a)).
(c) The provisions of this section shall apply to the spouse of any individual entitled to the benefits of subsection (a) of this section. Except in the case of the combat zone designated for
purposes of the Vietnam conflict, the preceding sentence shall not cause this section to apply to any spouse for any taxable year beginning more than 2 years after the date designated under §112 of the Internal Revenue Code [26 U.S.C. §112] as the date of termination of combatant activities in a combat zone.
(d) The period of service in the area referred to in subsection (a) of this section shall include the period during which an individual entitled to benefits under said subsection (a)is in a missing status, within the meaning of §6013(f)(3) of the Internal Revenue Code [26 U.S.C. §6013(f)(3)].
(a) (1) Notwithstanding the provisions of subsection (a) of this
section, any action or proceeding authorized by §560, §561, or §1221 of this title (regardless of the taxable period for which the tax arose), as well as any other action or proceeding authorized by law in connection therewith, may be taken, begun or prosecuted. In any other case in which the Director determines that collection of the amount of any assessment would be jeopardized by delay, the provisions of subsection (a) of this section shall not operate to stay collection of such amount as authorized by law. There shall be excluded from any amount assessed or collected pursuant to this paragraph the amount of interest, penalty, additional amount, and addition to the tax, if any, in respect of the period disregarded under subsection (a) of this section. In any case to which this paragraph relates, if the Director is required to give any notice to or make any demand upon any person, such requirement shall be deemed to be satisfied if the notice or demand is prepared and signed, in any case in which the address of such person last known to the Director is in any area for which United States post offices under instructions of the Postmaster General of the United States are not, by reason of combatant activities, accepting mail for delivery at the time the notice or demand is signed. In such case the notice or demand shall be deemed to have been given or made upon the date it is signed.
(2) The assessment or collection of any tax or of any liability to this State in respect of any tax, or any action or proceeding by or on behalf of this State in connection therewith,may be made, taken, begun, or prosecuted in accordance with law,without regard to the provisions of subsection (a) of this section,unless prior to such assessment, collection, action, or proceeding it is ascertained that the person concerned is entitled to the benefits of subsection (a) of this section.
(f) (1) Any individual who performed Desert Shield services (and the spouse of such individual) shall be entitled to the benefits of this section in the same manner as if such services were referred to in subsection (a) of this section.
(2) For purposes of this subsection, the term 'Desert Shield services' means any services in the Armed Forces of the United States or in support of such Armed Forces if--
(A) such services are performed in the area designated by the President pursuant to this subparagraph as the 'Persian Gulf Desert Shield Area', and
(B) such services are performed during the period beginning on August 2, 1990, and ending on the date on which any portion of the area referred to in subparagraph (A) is designated by the President as a combat zone pursuant to section 112 of the internal Revenue Code [26 U.S.C. §112].
(g) For purposes of subsection (a) of this section, the term 'qualified hospitalization' means--
(1) any hospitalization outside the United States, and
(2) any hospitalization inside the United States,except that not more than 5 years of hospitalization may be taken into account under this paragraph.
Paragraph (2) of this subsection shall not apply for purposes of applying this section with respect to the spouse of any individual entitled to the benefits of subsection (a) of this section.
§530. Assessment of tax.
(a) The amount of tax which is shown to be due on any return(including any additional amount subject to notice under §528(a) as a result of a mathematical or clerical error) shall be deemed to be assessed on the date of filing such return, and an increase in such tax which is shown on an amended return shall be deemed to be assessed on the date of filing such amended return. In the case of a return filed without the computation of the tax, the tax computed by the Director shall be deemed to be assessed on the date when payment of such tax is due. If a notice of proposed assessment has been mailed pursuant to §521(c) of this title, the amount of the proposed assessment shall be deemed to be assessed, if no protest under §523 of this title is timely filed, on the date provided in§522 of this title, or, if such a protest is timely filed, on the date when the determination of the Director becomes final pursuant to §525 of this title; provided, however, that, if the taxpayer seeks review of the Director's determination pursuant to the provisions of §544 of this title, the amount of the proposed assessment shall not be deemed to be assessed until the expiration of sixty days (thirty days in the case of withholding taxes, or, in the case of other taxes imposed by Chapter 11 of this title, 120 days if the taxpayer is outside the United States) from the first date when (i) the determination of the Tax Appeal Board under §544of this title becomes final and not subject to judicial review under §331 of this title, or (ii) if the taxpayer appeals from the Tax Appeal Board determination pursuant to §331 of this title, an order of the Superior Court of the State or the Supreme Court of the State entered upon the decision on such appeal becomes final and not subject to appeal. If an amended return or report filed pursuant to §514 of this title concedes the accuracy of a federal change or correction, any deficiency in tax under this title resulting therefrom shall be deemed to be assessed on the date of filing such amended return or report, and such assessment shall be deemed timely notwithstanding any other provisions of this chapter. Any amount paid as a tax, or in respect of a tax, other than amounts withheld at the source or paid as estimated income tax,shall be deemed to be assessed upon the date of the Director's receipt of payment, notwithstanding any other provision of this title.
(b) If the mode or time for the assessment of any tax under this Title or Title 4, including interest, penalties, additional amounts and additions to the tax, is not otherwise provided for, the director may establish the same by regulations.
(c) The Director may, at any time within the period prescribed for assessment, make a supplemental assessment, subject to the provisions of §521 of this title where applicable, whenever it is found that any assessment is imperfect or incomplete in any material respect.
§531. Limitations on assessment.
(a) Except as otherwise provided in this section, a notice of proposed assessment under §521(c) of this title shall be mailed to the taxpayer within 3 years after the return was filed (whether or not such return was filed on or after the date prescribed). No deficiency shall be assessed or collected with respect to the taxable period for which a return was filed unless such notice is mailed within such 3-year period, or within the period otherwise prescribed in this section.
(b) In the case of a deficiency in any license fee or tax under Part III of this title, a notice of proposed assessment under§521(c) of this title shall be mailed to the taxpayer within 3years after the expiration date of the license to which the proposed assessment relates.
(c) If no return is filed, or if a false and fraudulent return is filed with intent to evade any tax imposed by this title or Title4, a notice of proposed assessment under §521(c) of this title may be mailed to the taxpayer at any time.
(d) If the taxpayer fails to comply with the requirement of §514of this title by not reporting a change or correction to his federal income, gift, or estate tax return, or by not filing an amended return under this title, a notice of proposed assessment under §521(c) of this title may be mailed to the taxpayer at any time.
(e) If the taxpayer shall, pursuant to §514 of this title, report a change or correction or file am amended federal income, gift, or estate tax return increasing his federal tax liability, a notice of proposed assessment under §521(c) of this title with respect to such change or correction (if not otherwise deemed to have been assessed under §530(a) of this title upon the filing of such report or amended return) may be mailed to the taxpayer at any time within2 years after such report or amended return was filed.
(a) Where, before the expiration of the time prescribed in this section for the mailing of a notice of proposed assessment under §521(c) of this title, both the Director and the taxpayer shall have consented in writing to such assessment after such time, the proposed assessment may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. An agreement between the taxpayer and the Internal Revenue Service providing for the extension of the period for assessment of federal income taxes shall constitute an agreement with the Director to extend the period for assessment of income taxes under this title. A copy of any such agreement between the taxpayer and the Internal Revenue Service shall be filed by the taxpayer with the Director within 30days after its execution.
(a) For purposes of this section, a return filed before the last day prescribed by law or by regulation promulgated pursuant to law for the filing thereof, shall be considered as filed on such last day.
§532. Recovery of erroneous refund.
(a) An erroneous refund shall be considered an underpayment of tax on the date such refund was made, and a notice of proposed assessment under §521(c) of this title with respect to such refund may be mailed to the taxpayer at any time within the later of:
(1) 2 years from the making of such refund, or
(2) the limitation period provided by §531 of this title.
(b) As to any part of an erroneous refund that was induced by fraud or by the intentional misrepresentation of a material fact, a notice of proposed assessment under §521(c) of this title with respect to such refund may be mailed to the taxpayer at any time.
§533. Interest on underpayment.
(a) If any amount of tax, including tax required to be withheld by an employer, and including penalties, additional amounts and additions to the tax, imposed by this title or Title 4 is not paid on or before the last date prescribed for payment, interest on such amount at the rate of 1% per month, or fraction thereof, shall be payable for the period from such last date to the date such amount is paid, and from and after the date the assessment of such interest becomes final under §522 or §530 of this title to the date such amount is paid, such interest shall compound monthly. No interest shall be imposed if the amount due is less than $1, nor shall this section apply to any failure to pay estimated income tax under §1170 or §1904 of this title.
(a) For purposes of this section, the last date prescribed for payment of any tax shall be determined without regard to any extension of time.
(b) Interest prescribed under this section on any tax, including tax required to be withheld by an employer, and including penalties, additional amounts and additions to the tax, shall be assessed, collected and paid in the same manner as taxes. After an initial assessment of interest upon any amount of tax, penalty,additional amount or addition to the tax, interest shall continue to accrue on the unpaid balance of such amount until such amount has been paid in full, except as otherwise provided in subsection(e) of this section, and no further assessment of such interest shall be made.
(a) Interest shall be imposed under this section in respect of any penalty, additional amount or addition to the tax from the date of the notice of proposed assessment under §521(c) of this title of such penalty, additional amount or addition to the tax to the date of payment thereof.
(a) If a proposed assessment is made with respect to any amount,and if such amount is paid within 10 days after the date of the notice of proposed assessment thereof under §521(c) of this title,interest under this section on the amount so paid shall not be imposed for the period after the date of such notice.
(a) If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed under this section on the portion of the tax so satisfied for any period during which,if the credit had not been made, interest would have been allowable with respect to such overpayment.
(a) Any portion of any tax imposed, or any interest, penalty, additional amount or addition to the tax, which has
been
erroneously refunded and which is recoverable by the Director,shall bear interest at the rate of 1% per month, or fraction thereof, from the date of payment of such refund to the date of its recovery by the Director, and from and after the date the assessment of such interest becomes final under §522 or §530 of this title to the date of such recovery, such interest shall compound monthly.
(a) Interest prescribed under this section on any tax may be assessed and collected at any time during the period within which the tax, penalty, additional amount or addition to the tax to which such interest relates may be collected.
§534. Failure to file tax return or to pay tax.
(a) In case of failure to file any return required under authority of this title or Title 4 on or before the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return 5% of the amount of such tax if the failure is for not more than 1 month, with an additional 5% for each additional month or fraction thereof during which such failure continues, not exceeding 50% in the aggregate.For purposes of this subsection, the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed on the return.
(b) (1) In case of failure to pay the amount shown as tax on any return specified in subsection (a) of this section on or before the date prescribed
for payment of such tax (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause and not due to willful neglect,there shall be added to the amount shown as tax on such return 0.5% of the amount of such tax if the failure is for not more than 1 month, with an additional 0.5% for each additional month or fraction thereof during which such failure continues, not exceeding 25% in the aggregate. For purposes of computing such addition for any month, the amount of tax shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the beginning of such month and by the amount of any credit against the tax which may be claimed on the return. If the amount required to be shown as tax on the return is less than the amount shown as tax on the return, this paragraph shall be applied by substituting such lower amount.
(2) In the case of failure to pay any amount in respect of any tax
required to be shown on a return specified in subsection(a) of this section which is not so shown (including an assessment made pursuant to §528(a) of this title) within 10 days after any assessment thereof becoming final, unless it is shown that such failure is due to reasonable cause and not due to willful neglect,there shall be added to the amount of tax stated in the notice of proposed assessment 0.5% of the amount of such tax if the failure is for not more than 1 month, with an additional 0.5% for each additional month or fraction thereof during which such failure continues, not exceeding 25% in the aggregate. For purposes of computing such addition for any month, the amount of tax stated in the notice of proposed assessment shall be reduced by the amount of any part of the tax which is paid before the beginning of such month.
(c)(1) If any partnership required to file a return under§1174(a) of this title for any taxable year fails to file such return by the date prescribed therefor (determined with regard to any extension of time for filing) or files a return which fails to show the information required under §1174(a) of this title, such partnership shall be liable for a penalty determined under paragraph (2) of this subsection for each month, or fraction thereof, during which such failure continues (but not to exceed 5 months), unless it is shown that such failure was due to reasonable cause.
(2) For purposes of paragraph (1) of this subsection, the amount of penalty for any month is the product of $25, multiplied by the number of persons who were partners in the partnership during any part of the taxable year; provided, however, that the maximum penalty for any taxable year shall not exceed $10,000.
(3) The penalty prescribed by this subsection shall be assessed against and shall be payable by the partnership, and the deficiency and appeal procedures provided in §§521-526 of this title shall not apply; provided, however, that the Director shall mail written notice of such penalty to the partnership, which may, within 60 days from the date of the mailing of such notice,institute a protest of such penalty to the Director, whose
determination shall be final.
(d)(1) If any partnership required to file a return or 1 or more Schedules K-1 under §1174(b) of this title for any taxable year fails to file such return or Schedules K-1 by the date prescribed therefor (determined with regard to any extension of time for filing), such partnership shall be liable for a penalty determined under paragraph (2) of this subsection for each month, or fraction thereof, during which such failure continues (but not to exceed 5months), unless it is shown that such failure was due to reasonable cause.
(2) For purposes of paragraph (1) of this subsection, the amount of penalty for any month is $25, multiplied by the number of Schedules K-1 required to have been filed under §1174(b) of this title; provided, however, that the maximum penalty for any taxable year shall not exceed $10,000.
(3) The penalty prescribed by this subsection shall be assessed against and shall be payable by the partnership, and the deficiency and appeal procedures provided in §§521-526 of this title shall not apply; provided, however, that the Director shall mail written notice of such penalty to the partnership, which may,within 60 days from the date of the mailing of such notice,institute a protest of such penalty to the Director, whose determination shall be final.
(e) This section shall not apply to any failure to file a declaration of estimated tax or to pay any estimated tax.
(f) In case of each failure to file a statement of payment to another person required under the authority of this title,including the duplicate statement of tax withheld on wages, by the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be paid by the person so failing to file such statement, in the same manner as tax, a penalty of $2 for each such failure, but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed $2,000.
(g) The Director shall assess a penalty of $500 against any individual who files what purports to be a return of any tax imposed by this title or Title 4 but which:
(1) does not contain information on which the substantial correctness of the self-assessment may be judged or contains information that on its face indicates that the self-assessment is substantially incorrect; and
(2) evidences a position that is frivolous or a desire to delay or impede the administration of the revenue laws of this State.
(h)(1) In case of a failure to file any personal income tax return required under authority of Chapter 11 of this title on or before the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, and if it is determined that the taxpayer would have otherwise been due a refund of taxes if such return had been filed, the taxpayer shall be liable for a penalty equal to the lesser of $35 or the refund due on such return.
(2) The deficiency and appeal procedures provided in §§521-526of this title shall not apply to the penalty prescribed by this subsection; provided, however, that the Director shall mail written notice of such penalty to the taxpayer, who may, within 60 days from the date of the mailing of such notice, institute a protest of such penalty to the Director, whose determination shall be final.
(i) With respect to any return, the amount of the addition to the tax under subsection (a) of this section shall be reduced by the amount of the addition to the tax under subsection (b) of this section for any month (or fraction thereof) to which an addition to the tax is applied under both such subsections (a) and (b). In any case described in subsection (h) of this
section, the amount of the addition to tax under subsection (a) of this section shall not be reduced under the preceding sentence below the amount provided in such subsection (h).
(j) If any failure to file any return is fraudulent, subsection (a) of this section shall be applied by substituting'15%' for '5%1 each place it appears and by substituting '75%' for'50%'.
§535. Fraud and other penalties.
(a) If any part of any underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 75% of the portion of the underpayment which is attributable to fraud. If the Director establishes that any portion of an underpayment is attributable to fraud, the entire underpayment shall be treated as attributable to fraud, except with respect to any portion of the underpayment which the taxpayer establishes (by a preponderance of the evidence) is not attributable to fraud. In the case of a joint return, this section shall not apply with respect to a spouse unless some part of the underpayment is due to the fraud of such spouse. For
purposes of this subsection, 'underpayment' shall have the meaning ascribed to such term in §6664(a) of the Internal Revenue Code [26 U.S.C.§6664(a)), or successor provisions. The penalty prescribed by this subsection shall apply only in cases where a return of tax is filed.
(b) If an individual subject to tax under Chapter 11 of this title fails to file a declaration of estimated tax, or fails to pay all or any part of an installment of tax imposed under Chapter llof this title, such individual shall be deemed to have made an underpayment of estimated tax, and there shall be added to the tax an amount equal to 1 1/2% per month, or fraction thereof, of the amount of such underpayment for the period of the underpayment. The Director shall determine the amount of an underpayment of estimated tax by an individual in a manner consistent with the internal revenue laws of the United States.
(c) (1) In the case of any underpayment of tentative tax or installment of estimated tax required by Chapter 19 of this title,there shall be added to the tax for the taxable year an amount equal to 1 1/2% per month, or fraction thereof, of the amount of such underpayment for the period of the underpayment.
(2) For purposes of paragraph (1) of this subsection, the amount of the underpayment shall be the excess of:
(A) the amount of the tentative tax or installment payment which would be required to be made if the estimated tax were equal to 80% of the tax shown on the final return for the taxable year, or if no such return was filed, 80% of the tax for such taxable year, over
(B) the amount, if any, of the tentative tax or the installment paid on or before the last date prescribed for payment.
(3) For purposes of paragraph (1) of this subsection, the period of the underpayment shall run from the date the tentative tax or installment was required to be paid to the first day of the fourth month following the close of the taxable year, or to the date on which paid, whichever is earlier.
(4) Notwithstanding the foregoing provisions of this subsection, no addition to tax shall be imposed under this subsection if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment thereof equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were the tax shown on the final return of the taxpayer for the preceding taxable year.
(5) In the case of a large corporation, paragraph (4) of this subsection shall not apply. For purposes of this paragraph, the term 'large corporation' means any corporation if such corporation(or any predecessor corporation) had Delaware taxable income of$200,000 or more for any of the 3 taxable years immediately preceding the taxable year involved.
(d) If any employer fails to pay the amount shown as tax on any withholding return filed pursuant to §1154 of this title, there shall be added to the tax an amount equal to 0.5% of the tax required to be shown on such return for each month, or fraction thereof, during which such failure continues, not exceeding 257 in the aggregate. Such employer shall be liable for the payment of such additions to tax, and it shall not be collected from the employee.
(e) Any person required under this title to collect, account for and pay over any tax imposed by this title, other than §3002 and Chapters 51 and 52, who willfully fails to collect or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof,shall, in addition to other penalties provided by law, be liable for a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over. No addition to tax under subsection (a) of this section shall be imposed for any action or failure to act to which this subsection applies.
(f) In addition to any criminal penalty provided by law, any person who willfully fails to pay, or to deduct or withhold and pay, any tax imposed under authority of this title or Title 4, or to make tender, sign or certify any return or declaration of estimated tax, or to supply any information within the time required by or under this title or Title 4, shall be liable for a penalty of not more than $3,000, in addition to any other amounts prescribed under this title, that shall be assessed and collected by the Director.
(g)(1) In addition to any criminal penalty provided by law, the Director shall assess a penalty of $500 whenever:
(A) Any individual makes a false statement under §1151 of this title which results in a decrease in the amounts deducted and withheld under subchapter VII of Chapter 11 of this title; and
(B) As of the time such statement was made, there was no reasonable basis for such statement.
(2) The Director may waive in whole or in part the penalty imposed under paragraph (1) of this subsection if the taxes imposed with respect to the individual under subchapter VII of Chapter llof this title for the taxable year are equal to or less than the sum of:
(A) The credits against such taxes allowed by said subchapter; and
(B) The payments of estimated tax on account of such taxes.
(h) Penalties prescribed under the provisions of this chapter shall be additions to tax and shall be assessed, collected and paid in the same manner as taxes.
(a) For purposes of subsection (a) of this section (relating to underpayments due to fraud), the amount shown as the tax by the taxpayer upon his return shall be taken into account in determining the amount of the underpayment only if such return was filed on or before the due date of such return, determined with regard to any extension of time for such filing.
(b) If any check or money order in payment of any amount receivable under this title or Title 4 is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered such check or money order an amount equal to 2% of the amount of such check or money order, except that if the amount of such check or money order is less than $750, the penalty under this subsection shall be $15 or the amount of such check or money order, whichever is the lesser. This subsection shall not apply if the person tendered such check or money order in good faith and with reasonable cause to believe it would be duly paid.
(k)(1) If --
(A) any part of any understatement of liability with respect to any return or claim for refund is due to a position for which there was not a realistic possibility of being sustained on its merits;
(B) any person who is an income tax return preparer with respect to such return or claim knew (or reasonably should have known) of such position; and
(C) the relevant facts affecting the tax treatment of the item affected by such position were not adequately disclosed in such return or claim or in a statement attached to such return or claim (or in a federal return or a statement attached thereto, a copy of which was filed with such return or claim) or was frivolous, such person shall pay a penalty of $250 with respect to such return or claim unless it is shown that there is reasonable cause for the understatement and such person acted in good faith.
(2) If any part of any understatement of liability with respect to any return or claim for refund is due --
(A) to a willful attempt in any manner to understate the liability for tax by a person who is an income tax return preparer with respect to such return or claim, or
(B) to any reckless or intentional disregard of rules or regulations by any such person, such person shall pay a penalty of $1,000 with respect to such return or claim. With respect to any return or claim, the amount of the penalty payable by any person by reason of this paragraph shall be reduced by the amount of any penalty paid by such person by reason of paragraph (1) of this subsection.
(3) (A) If at any time there is a final administrative determination or a final judicial decision that there was no understatement of liability in the case of any return or claim for refund with respect to which a penalty under paragraph (1) or (2)of this subsection has been assessed, such assessment shall be abated, and if any portion of such penalty has been paid the amount so paid shall be refunded to the person who made such payment as an overpayment of tax without regard to any period of limitations which, but for this subparagraph, would apply to the making of such refund.
(B) For purposes of this subsection, the term 'understatement of liability' means any understatement of the net amount payable with respect to the tax imposed under Chapter 11 or Chapter 19 of this title or any overpayment of the net amount creditable or refundable with respect to any such tax. Except as otherwise provided in subparagraph (A) of this paragraph, the determination of whether or not there is an understatement of liability shall be made without regard to any administrative or judicial action involving the taxpayer.
(1) Any person who -
(1) aids or assists in, procures, or advises with respect to, the preparation or presentation of any portion of a return, affidavit, claim, or other document,
(2) knows or has reason to believe that such portion will be used in connection with any material matter arising under this title or Title 4, and
(3) knows that such portion (if so used) would result in an
understatement of the liability for tax of another person,shall pay a penalty with respect to each such document in the amount determined in accordance with, and subject to the limitations contained in, §6701 of the Internal Revenue Code [26U.S.C.
§6701], or successor provision. Except as provided in subsection (m) of this section, the penalty imposed by this subsection shall be in addition to any other penalty provided bylaw.
(m) No penalty shall be assessed under subsection (k) of this section on any person with respect to any document for which a penalty is assessed on such person under subsection (1) of this section.
§536. Accuracy—related penalty.
(a) If this section applies to any portion of an underpayment of any tax imposed by this title or Title 4 required to be shown on a return, there shall be added to the tax an amount equal to 20%(40% in the case of gross valuation misstatements) of the portion of the underpayment to which this section applies.
(b) This section shall apply to the portion of any underpayment which is attributable to one or more of the following:
(1) Negligence or disregard of rules and regulations.
(2) Any substantial understatement of tax.
(3) Any substantial valuation misstatement with regard to any tax imposed by Chapter 11 or 19 of this title.
(4) Any substantial estate or gift tax valuation understatement with respect to any tax imposed by Chapter 13,Chapter 14, or Chapter 15 of this title.
(c) For purposes of subsection (b) of this section, the following terms shall have the meanings ascribed to such terms in§6662 of the Internal Revenue Code (26 U.S.C.§6662l, or successor provisions, except that '$1,500' shall be substituted for '$5,000'and '$3,000' shall be substituted for '$10,000' each place such dollar amounts appear in the said §6662:
(1) 'negligence,'
(2) 'disregard,'
(3) 'substantial understatement of income tax,'
(4) 'substantial valuation misstatement,'
(5) 'substantial estate or gift tax valuation understatement,' and
(6) 'gross valuation misstatement.'
(d) For purposes of determining under subsection (b) of this section whether a portion of any underpayment is attributable to one or more of the items specified in paragraphs (1) through (4) of such subsection (b), the provisions of §6662 of the Internal Revenue Code (26 U.S.C. §6662), or successor provisions, shall be applied in the same manner as if such provisions were applicable to the taxes imposed by this title or Title 4.
(e) For purposes of this section, 'underpayment' shall have the meaning ascribed to such term in §6664(a) of the Internal revenue Code [26 U.S.C. §6664(a)], or successor provision. The penalty prescribed by this section
shall apply only in cases where a return of tax is filed.
§537. Authority to make credits or refunds.
(a) In the case of any overpayment, the Director, within the applicable period of limitations, may credit the amount of such overpayment, including any interest allowed thereon, against any liability in respect of any tax imposed by the tax laws of this State on the person who made the overpayment, and the balance shall be refunded by the Director to such person.
(b) If the amount allowable as a credit for tax withheld from the taxpayer exceeds the tax to which the credit relates, the excess shall be considered an overpayment by the taxpayer for purposes of subsection (a) of this section.
(c) In the case of an overpayment of tax required to be deducted and withheld under §1151 of this title, refund or credit shall be made to the employer only to the extent that the amount of such overpayment was not deducted and withheld by the employer.
(d) If any amount of tax is assessed or collected after the expiration of the period of limitations properly applicable thereto, such amount shall be considered an overpayment for purposes of subsection (a) of this section.
§538. Abatements.
(a) The Director is authorized to abate the unpaid portion of the assessment of any tax, interest, penalty, additional amount, or addition to the tax, or any liability in respect thereof, which is:
(1) excessive in amount,
(1) assessed after the expiration of the period of limitations
properly applicable thereto, or
(2) erroneously or illegally assessed.
(b) The Director is authorized to abate any portion (whether or not theretofore paid) of the assessment of any tax, interest, penalty, additional amount, or additions to the tax, or any liability in respect thereof, if he determines under uniform rules prescribed by him that the administration and collection costs involved would not warrant collection of the amount due.
§539. Limitations on credit or refund.
(a) Claim for credit or refund of an overpayment of any tax imposed by this title or Title 4 shall be filed by the taxpayer within 3 years from the last date prescribed for filing the return(or in the case of license fees or taxes under Part III of this title, 3 years from the expiration date of the license to which such overpayment relates) or within 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years from the time the tax was paid. No credit or refund shall be allowed or made after the expiration of the period of limitation prescribed in the preceding sentence for the filing of a claim for credit or refund,unless a claim for credit or refund is filed with the Director by the taxpayer within such period.
(b)(1) If the claim for credit or refund was filed by the taxpayer during the 3-year period prescribed in subsection (a) of this section, the amount of the credit or refund shall not exceed the portion of the tax paid within the
period immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of time for filing the return.
(2) If the claim was not filed within such 3-year period, the amount of the credit or refund shall not exceed the portion of the tax paid during the 2 years immediately preceding the filing of the claim.
(3) If no claim was filed, the credit or refund shall not exceed the amount which would be allowable under either paragraph(1) or (2) of this subsection, as the case may be, if claim was filed on the date the credit or refund is allowed.
(c) If an agreement under the provisions of §531(f) of this title extending the period for assessment of a tax imposed by this title or Title 4 is made within the period prescribed in subsection (a)of this section for the filing of a claim for credit or refund, (f)the period for filing claim for credit or refund or for making credit or refund if no claim is filed, provided in subsection (a)of this section, shall not expire prior to 6 months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof under §531(f) of this title; and (ii) if a claim is filed, or a credit or refund is allowed when no claim was filed, after the execution of the agreement and within 6 months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof, the amount of the credit or refund shall not exceed the portion of the tax paid after the execution of the agreement and before the filing of the claim or the making of the credit or refund, as the case may be, plus the portion of the tax paid within the period which would be applicable under subsection(b) of this section if a claim had been filed on the date the agreement was executed.
(d) If the taxpayer is required by §514 of this title to report a change or correction in federal income, estate, or gift tax liability reported on his federal tax return for any taxable period, or to file an amended tax return under this title with the Director, claim for credit or refund of any resulting overpayment of tax under this title shall be filed by the taxpayer within 2 years from the time such report or amended return was required to be filed with the Director. If such a report or amended return required by §514 of this title is not filed within the 90-day period specified in that section, interest on any resulting creditor refund shall not accrue for the period after such ninetieth day and prior to the forty-fifth day after the date of filing the claim for credit or refund. The amount of any such credit or refund shall not exceed the amount of the reduction in tax attributable to such federal change or correction or attributable to the items amended on the taxpayer's amended federal tax return. This subsection shall not affect the time within which a claim for credit or refund may be filed, or the amount for which a credit or refund may be made, without regard to this subsection.
(e) If the claim for credit or refund relates to an overpayment attributable to a net operating loss carry back or a capital loss carry back, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be that period which ends 3 years after the time prescribed by law for filing the return(including extensions thereof) for the taxable year of the net operating loss or net capital loss which results in such carry back, or the period prescribed in subsection (c) of this section in respect of such taxable year, whichever expires later. In the case of such a claim, the amount of the credit or refund may exceed the portion of the tax paid within the period provided in subsection (b) or (c) of this section, whichever is applicable, to the extent of the amount of the overpayment attributable to such carry back.
(a) For purposes of this section, tax shall be deemed to have been paid on the date determined in accordance with §540(c) of this title.
§540. Interest on overpayments.
(a) General. -- Subject to the limitations specified in subsection
(b) of this section, interest shall be allowed and paid upon any overpayment in respect of any tax imposed by this title or Title 4 at the rate of 1% per month, or fraction thereof.
(b) Limitations. --
(1) No interest shall be allowed or paid on any overpayment of less than $1.
(2) Interest shall be allowed and paid on any overpayment in respect of any tax from the forty—sixth day (ninety—first day in the case of the tax imposed under Chapter 19 of this title) after the date of such overpayment, to (i) in the case of a refund, the date of the refund, or (ii) in the case of a credit, the due date of the amount against which the credit is taken; provided, however,that in the case of a return of tax which is filed after the due date of such return (determined with regard to extensions), no interest shall be allowed or paid for any day before the forty—sixth day (ninety—first day in the case of the tax imposed under Chapter 19 of this title) after the date on which the return is filed.
(3) If the Director or his delegate finds that (i) a claim for credit or refund of any overpayment in respect of any tax or an amended return reporting any such overpayment has been unreasonably delayed because of any action or inaction by the taxpayer, and (ii)there was no reasonable basis for the amount of such overpayment,no interest with respect to such overpayment shall be allowed or paid for any day before the forty—sixth day (ninety—first day in the case of the tax imposed under Chapter 19 of this title) after the date such claim or amended return was filed. The Director shall mail written notice of such determination to the taxpayer,who may, within 60 days from the date of the mailing of such notice, institute a protest of such finding to the Director, whose determination shall be final.
(c) Early returns and advance payments. -- For purposes of this section and §539 of this title:
(1) Any return filed before its due date shall be considered as filed on such due date.
(2) Any tax paid by the taxpayer before its due date shall be considered as paid on such due date.
(3) For purposes of paragraphs (1) and (2) of this subsection, the due date for filing a return or paying the tax shall be determined without regard to any extension of time granted the taxpayer.
(4) Any income tax actually deducted and withheld from the taxpayer, and any amount paid by the taxpayer as estimated or tentative income tax shall be deemed to have been paid by the taxpayer on the due date of the taxpayer's income tax return(determined without regard to any extension of time for filing) for the taxable year with respect to which such tax constitutes a credit or payment.
(d) Refund of income tax caused by carry back.-- For purposes of subsection (a) of this section, if any overpayment of tax imposed by Chapter 11 or Chapter 19 of this title results from a carry back of a net operating loss or net capital loss, such overpayment shall be deemed not to have been made prior to the filing date for the taxable year in which such net operating loss or net capital loss arises.
§541. Form of claims for credit or refund; amendments
A claim for credit or refund shall be filed with the Director in writing and shall state the specific grounds upon which it is founded. The Director may by regulations prescribe the information to be included in a claim. A claim may not be amended after the last date prescribed by §539 of this title for filing a claim for credit or refund if the net effect of the amendment would be an increase in the amount of the overpayment.
§542. Notice of disallowance; finality.
If the Director disallows a claim for credit or refund, in whole or in part, the Director shall mail written notice of the disallowance to the taxpayer, and such notice shall set forth the reason for the disallowance. The action of the Director in disallowing all or any part of a claim for credit or refund shall become final upon the expiration of sixty days (thirty days in the case of withholding taxes, or, in the case of other taxes imposed by Chapter 11 of this title, 120 days if the taxpayer is outside the United States) from the date on which the Director mailed the notice of disallowance to the taxpayer, unless within such period the taxpayer protests the Director's disallowance pursuant to the provisions of §523 of this title.
§543. Claim for credit or refund or protest deemed disallowed.
If the Director fails to mail written notice of his action on any claim for credit or refund, or on any protest under §523 of this title of a disallowance of a claim for credit or refund, within 6months after such claim or protest was filed, the taxpayer may thereafter, and prior to notice of action by the Director, consider such claim or protest to have been disallowed by the Director, and the taxpayer may, at any time prior to the expiration of three years from the date on which such claim or protest was filed,proceed pursuant to §542 or §544, as the case may be.
§544. Review of determinations of Director on protests.
A determination by the Director on a taxpayer's protest pursuant to §523 of this title shall be subject to review by the taxpayer's filing a petition with the Tax Appeal Board, in such form as the tax Appeal Board may prescribe, within the time limits specified in§525 or §543 of this title, as the case may be. The determination of the Tax Appeal Board shall be subject to judicial review as provided in §331 of this title.
§545. Collection of debts owed to certain State agencies.
(a) General. - Upon receiving notice from any claimant agency that the taxpayer owes a debt to such agency, the Director shall -
(1)reduce the amount of any overpayment payable to the taxpayer by the amount of such debt;
(2)pay the amount by which such overpayment is reduced under paragraph (1) of this subsection to such agency; and
(3)notify the taxpayer that such overpayment has been reduced by an amount necessary to satisfy such debt.
(b) Definitions. -- For purposes of this section -
(1)'Claimant agency' means (i) the Department of Health and Social Services, with respect to any debt owed to it; (ii) the Department of Health and Social Services by assignment from a public assistance recipient pursuant to § 503(d) of Title 31, or as the legal representative of a custodial parent who has applied for non-public assistance services of the Division of Child Support Enforcement; or (iii) the Department of Labor.
(2)'Debt' means any liquidated sum which is past due, legally enforceable and has accrued through contract, subrogation, tort or operation of law, whether or not there is an outstanding judgment for such sum.
(c) Regulations. -(1)The Director shall promulgate regulations providing for:
(A) procedures and methods to be employed by a claimant agency with respect to the operation of this section;
(B) due notice to the taxpayer (and, in the case of an overpayment of the tax imposed by Chapter 11 of this title, any spouse with whom the taxpayer files a joint return) of the reduction in the overpayment and of the opportunity, upon request, for a hearing before the claimant agency prior to such reduction;
(C) safeguards against the disclosure or inappropriate use of any personally identifiable information regarding the taxpayer
obtained or maintained pursuant to this chapter;
(D) a minimum debt, amounts below which, in light of
administrative expenses and efficiency, shall, in the Director's discretion, not be subject to the collection procedures set forth in this section; and
(A) reimbursement by the claimant agency to the Director of (or reduction in the amount payable to the claimant agency by the Director under subsection (a)(2) of this section by an amount equal to) all costs, direct and indirect, determined on a statistical or actual basis, of effectuating the collection procedures set forth in this section.
(2)Regulations promulgated under the authority of this subsection shall have the force and effect of law.
(d) Remedy not exclusive. -- The collection procedures prescribed by this section are in addition to, and not in substitution for, any other remedy available by law.
(e) Joint and combined income tax returns. --
(1) If a refund from which the reduction described in subsection
(a)(1) of this section would be made is based upon a joint return of
the tax imposed by Chapter 11 of this title, the director shall
(A) notify each taxpayer filing such return that the reduction is being made from a refund based upon such return;
(A) include in such notification a description of the right of
the non debtor taxpayer to file a written protest with the Director, within 30 days of the date of mailing such notification, for the purpose of showing the non debtor taxpayer's proper share of such refund; and
(B) if such a showing is made, promptly remit to the non debtor taxpayer the non debtor taxpayer's proper share of such refund, and apply the balance of such refund in the manner prescribed in subsection (a) of this section.
(2) In the event the debtor shall be due a refund in combination with a non debtor by virtue of having filed separately but combined on one return of the tax imposed by Chapter 11 of this Title, the Director shall regard each spouse as entitled to separate refunds based upon the taxes due and prior payments of each spouse individually. In such a case, the reduction described in subsection (a)(1) of this section shall not be applicable to such separate refund due to the non debtor spouse, but such reduction shall be applicable to such separate refund due to the debtor spouse.
(f) Review of reductions. -- No court of this State shall have
jurisdiction to hear any action, whether legal or equitable,brought to restrain or review a reduction authorized by subsection(a) of this section. Except as otherwise provided in subsection(e) of this section, no such reduction shall be subject to review by the Director in any administrative proceeding. No action brought against this State to recover the amount of any such reduction shall be considered to be a suit for a refund of tax. This subsection shall not be deemed to preclude (i) a prior hearing, upon request of the taxpayer, before the claimant agency as set forth in subsection (c)(1)(B) of this section, or (ii) any legal, equitable or administrative action against the claimant agency after payment to it of such reduction.
Subchapter IV. Enforcement
§551. Timely mailing.
(a) If any return, declaration of estimated tax, claim,statement, notice, protest or other document required to be filed,or any payment required to be made, within a prescribed period or on or before a prescribed date under the authority of any provision of the revenue laws of this State, other than §331 of this title, is, after such period or such date,delivered by United States mail to the agency, officer or office with which such document is required to be filed, the date of the United States postmark stamped on the cover in which such document is mailed shall be deemed to be the date of delivery or the date of payment, as the case may be.
(b) This section shall apply only if the postmark date falls within the prescribed period, or on or before the prescribed date for the filing of the return, declaration, claim, statement,notice, protest or other document (determined with regard to any extension granted for such filing), or for making the payment(determined with regard to any extension granted for making such payment), and only if such document or payment was deposited in the mail, postage prepaid, properly addressed to the agency, officer or office with which such document is required to be filed or to which such payment is required to be made.
(c) If any return, declaration of estimated tax, claim,statement, notice, protest or other document or payment is sent by United States registered mail, such registration shall be prima facie evidence that such document or payment was delivered to the agency, officer or office to which addressed. To the extent that the Director shall prescribe, certified mail may be used in lieu of registered mail under this subsection.
(a) When the last day prescribed under the authority of the revenue laws of this State, including any extension of time, for performing any act falls on Saturday, Sunday or a legal holiday in this State, the performance of such act shall be considered timely if it is performed on the next succeeding day which is not a Saturday, Sunday or a legal holiday in this State.
§552. Collection procedures.
(a) Any tax imposed by this title or Title 4 shall be collected by the Director, and he may establish the mode or time for the collection of any amount due under this title or Title 4 if not otherwise specified. The Director shall, on request, give a receipt for any amount collected under this title or Title 4. The Director may authorize incorporated banks or trust
companies to receive any tax imposed under this title or Title 4, in such manner, at such times, and under such conditions as he may prescribe, and the director shall prescribe the manner, times and conditions under which the receipt of tax by any such bank and trust company is to be treated as a payment of tax to the Director.
(a) The Director shall, as soon as practicable after an assessment of tax, interest, penalty, additional amount or addition to the tax becomes final pursuant to §522 or §530 of this title,give written notice to each person liable for the payment of the assessed amount, stating the amount so assessed and demanding payment thereof within 10 days of the date of such notice. Such notice shall be sent by mail (by certified or registered mail if the amount assessed exceeds $500) to such person at his last known address. Except where the Director determines that collection would be jeopardized by delay, if any amount is assessed prior to the last date, including any date fixed by extension, prescribed for payment of such amount, payment of such amount shall not be demanded under this subsection until after such date.
§553. Period of collection after assessment; agreement for extension.
(a) Where the assessment of any amount of tax, interest,penalty, additional amount or addition to the tax imposed by this title or Title 4 has been made within the period of limitation properly applicable thereto, such amount may be collected by a proceeding in court under §554 of this title, but only if such proceeding is begun-
(1) within 10 years after the assessment of such amount has become final, or
(2) prior to the expiration of any period for collection agreed upon in writing by the Director and the taxpayer before the expiration of such 10-year period.
(b) The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
(c) The provisions of subsection (a) of this section shall not affect collection by set-off against tax refunds due to the taxpayer, which set-off may occur whenever there exists an unpaid assessment of tax, interest, penalties, additional amounts or additions to the tax.
(d) The provisions of subsection (a) of this section shall not shorten the period during which a judgment for any amount entered in a court may be collected by execution upon such judgment.
§554. Obtaining court judgment by filing certificate.
(a) If any amount of tax, interest, penalties, additional amounts or additions to the tax payable under this title or Title 4 has been assessed and was not paid when due, the Director may file in the office of the Prothonotary of the county in which the taxpayer resides or owns real or personal property, a certificate specifying the amount of such tax, interest, penalties, additional amounts and additions to the tax due, the name and last known address of the taxpayer liable for such amount and the fact that the Director has complied with all of the provisions of this title or predecessor provisions in the assessment of such amount. From the time of such filing, the amount set forth in the certificate shall thereupon be and constitute a judgment of record in such court with like force and effect as any other judgment of the court, except that the renewal provisions of §4711 of Title 10 shall not be applicable,and a judgment obtained under this subsection shall automatically continue for a period of twenty years from the date of its entry. The Prothonotary shall enter all such certificates in the regular judgment docket and index them as soon as they are filed.
(a) No property, legal or equitable, wages, salaries, deposits or moneys in banks (notwithstanding the provisions of §3502 of Title10), savings institutions or loan associations, or other property or income of any taxpayer shall be exempt from execution or attachment process issued upon, or from collection of, any judgment obtained under subsection (a) of this section. This section shall not apply to liens created under §1345 of this title.
(a) Any judgment obtained under subsection (a) of this section on or after January 1, 1992, shall automatically continue for a period of twenty years from the date of its entry. Any judgment obtained under predecessor
provisions of this section by virtue of a certificate filed prior to January 1, 1992 for tax, interest, penalties, additional amounts or additions to the tax shall continue for a period of twenty years from the original date of its entry even though, when such certificate was filed, such predecessor provision may have provided for a period of continuation of less than twenty years.
§555. Release of lien.
The Director may at any time release all, or any portion of, the property subject to any lien arising under this chapter or subordinate such lien to other judgments, liens or security interests if he determines that the amount secured by such lien is sufficiently secured by an encumbrance on other property of the taxpayer or that the release or subordination of such lien will not endanger or jeopardize the collection of such amount. This section shall not apply to releases of liens under §1346 of this title.
§556. Issuance of warrant.
If any person liable to pay any assessed amount of tax, interest, penalty, additional amount or addition to the tax imposed under this title or Title 4 neglects or refuses to pay such amount within 10 days after notice and demand therefor, the Director, after obtaining a judgment pursuant to §554 of this title, or otherwise, may issue a warrant directed to the sheriff of any county of this state, or to the Director's representative, commanding such Sheriff or representative to garnish wages and bank accounts, notwithstanding the provisions of §3502 or §4913(b) of Title 10, of such person or to levy upon and sell such person's real and personal property for the payment of the amount assessed, with the cost of executing the warrant, and to return such warrant to the director and to pay him the money collected by virtue thereof within 60 days after receipt of the warrant. A copy of the warrant shall be filed with the Prothonotary and noticed on the regular judgment docket. If the Director finds that the collection of the amount assessed is in jeopardy, he may issue a warrant without regard to the 10-day waiting period provided for in the foregoing provisions of this-section. All sales of real and personal property under authority of this section shall be made pursuant to Title 10.
§557 Nonresident taxpayer.
When notice and demand for the payment of any assessed amount of tax, interest, penalty, additional amount, or addition to the tax imposed under this title or Title 4 is given to a nonresident taxpayer, and the Director determines that it is not practicable to locate property of the taxpayer sufficient in amount to cover the amount assessed, the Director shall send a copy of the certificate provided for in §554 of this title to the taxpayer at the taxpayer's last known address, together with a notice that such certificate has been filed with the Prothonotary of New Castle County. hereafter, the Director may authorize the institution of any action or proceeding to collect or enforce such judgment in any place and by any procedure that a civil judgment of a court of record of this State could be collected or enforced. The Director may also, at his discretion, designate agents or retain counsel outside this State, for the purpose of collecting outside this state any assessed amounts due under this title or Title 4 from taxpayers who are not residents of this State. The Director may fix the compensation of such agents and counsel to be paid out of money appropriated or otherwise lawfully available for the payment thereof, and the Director may require of such agents and counsel bonds or other security for the faithful performance of their duties. The Director is authorized to enter into agreements with the tax agencies or departments of other states and the District of Columbia for the collection of taxes from persons found in this State who are delinquent in the payment of taxes imposed by such other states or the District of Columbia, on condition that such other states and the District of Columbia afford similar assistance in the collection of taxes from persons found in their jurisdictions who are delinquent in the payment of taxes imposed under this title or Title 4. The Director is authorized to enter into similar agreements with the Internal Revenue Service with respect to the collection of taxes imposed under this title and Title 4 and the taxes imposed under the internal revenue laws of the United States.
§558 Tax claims of other states.
The courts of this State shall recognize and enforce liabilities for taxes lawfully imposed by any other state which extends a like comity to this State, and the duly authorized officers of any such other state may sue for the collection of such taxes in the courts of this State. A certificate by the Secretary of State of any such other state that an officer suing for the collection of such a tax is duly authorized to collect the tax shall be conclusive proof of such authority. For the purposes of this section, the word 'taxes' shall include interest, penalties, additional amounts and additions to the tax. Liability for interest, penalties, additional amounts and additions to the tax shall be recognized and enforced by the courts of this State to the same extent that the laws of such other state permit the enforcement in its courts of liability for interest, penalties, additional amounts and additions to the tax due this State under this title or Title 4. Nothing in this section shall be construed as giving the courts of this State jurisdiction to enforce liability for the taxes of any other state, except by an action against an individual who is a resident of this State or by an action against a corporation which is maintaining its principal office in this State at the time of the commencement of such action.
§1. Order to compel compliance.
(a) If any person wilfully refuses to ftle a tax return required by this title or Title 4, the Director may apply to a Judge of the Superior Court for the county in which the taxpayer (or other person required to file such return on behalf of the taxpayer) resides, or, in the case of a corporate taxpayer or a taxpayer that is a partnership, estate or trust, for the county in which such taxpayer maintains its principal office in this State, for an order directing such taxpayer or other person to file the required return. If a person fails or refuses to obey such an order, such person shall be guilty of contempt of court.
(b) If any person wilfully refuses to make available any books,papers, records or memoranda for examination by the Director, or the Director's representative, or wilfully refuses to attend and testify, pursuant to the powers conferred on the Director by§563(c) of this title, the Director may apply to a Judge of the superior Court for the county in which such person resides for an order directing such person to comply with the Director's request for books, papers, records or memoranda, or for his attendance and
testimony. If the books, papers, records or memoranda required by the Director are in the custody of a corporation, the order of the court may be directed to any principal officer of such corporation.If a person fails or refuses to obey such an order, such person shall be guilty of contempt of court.
§560. Transferees.
(a) The liability, at law or in equity, of a transferee of property of a taxpayer for any tax, interest, penalty, additional amount or addition to the tax due under this title (other than Chapter 13, which, with regard to transferee liability, shall be governed exclusively by the provisions of Chapter 13) or due under Title 4 shall be assessed, paid and collected in the same manner,and subject to the same provisions and limitations, as in the case of the tax, interest, penalty, additional amount or addition to the tax with respect to which the liability was incurred, except as provided in this section. The term 'transferee' includes donee ,heir, legatee, devisee and distributee.
(a) In the case of the liability of an initial transferee, the period of limitation for assessment of any liability is within lyear after the expiration of the period of limitation for assessment against the transferor; in the case of the liability of a transferee of a transferee, within 1 year after the expiration of the period of limitation for assessment against the preceding transferee, but not more than 3 years after the expiration of the period of limitation for assessment against the initial transferor; except that if, before the expiration of the period of limitation for the assessment of the liability of the transferee, a proceeding for the collection of the liability has been begun against the initial transferor or the last preceding transferee, respectively,then the period of limitation for assessment of the liability of the transferee shall expire 1 year after the proceeding is terminated.
(a) If, before the expiration of the time provided in subsection(b) of this section for the assessment of the liability, the director and the transferee have both consented in writing to its assessment after such time, the liability may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent
agreements in writing made before the expiration of the previous period. For the purpose of determining the period of limitation on credit or refund to the transferee of overpayments of tax made by such transferee, or of overpayments of tax made by the transferor of which the transferee is legally entitled to credit or refund, such agreement, and any extension thereof, shall be deemed an agreement and extension thereof referred to in §539(c) of this title. If the agreement is executed after the expiration of the period of limitation for assessment against the taxpayer with reference to whom the liability of such transferee arises, then in applying the limitations under §539(b) of this title on the amount of the credit or refund, the periods specified in §539(a) of this title shall be increased by the period from the date of such expiration to the date of the agreement.
(a) For purpose of this section, if any person is deceased or is a corporation which has terminated its existence, the period of limitation for assessment against such person shall be the period that would be in effect had death or termination of existence not occurred.
§561. Jeopardy assessments.
(a) If the Director finds that the collection of a tax, whether or not the time otherwise prescribed by law for making a return and paying such tax has expired, or the assessment or collection of a deficiency for any year, current or past, will be jeopardized by delay, he shall immediately assess such tax or such deficiency and shall mail or issue notice of his finding to the taxpayer together with a demand for immediate payment of such tax or such deficiency declared to be in jeopardy, together with all interest, penalties,additional amounts and additions to the tax provided by law.
(b) In the case of a jeopardy assessment of a tax for a current taxable year or other taxable period, the Director shall determine such tax for the period beginning on the first day of such current taxable year or other taxable period and ending on the date of the Director's finding under subsection (a) of this section as though such period were a taxable year or other taxable period of the taxpayer.
(c) A jeopardy assessment shall be immediately due and payable,and
proceedings for the collection of such assessment may be commenced at once, subject to the provisions of §§554 and 556 of this title. The taxpayer, however, may stay the collection of the whole or any amount of such assessment and prevent such assessment from becoming final by filing with the Director, within 10 days after the date of mailing or issuing the notice of jeopardy assessment, a request for reassessment, accompanied by a bond or,in the discretion of the Director, other adequate security in an amount equal to the amount as to which the stay of collection is sought, conditioned upon the payment of the amount (together with interest thereon) the collection of which is stayed. If a request for reassessment, accompanied by a bond or, in the discretion of the Director, other adequate security in the appropriate
amount, is not filed within such 10-day period, the assessment shall become final upon the expiration of such 10-day period.
(a) If a request for reassessment, accompanied by a bond or other adequate security, is filed within the 10-day period provided by subsection (c) of this section, the collection of so much of the amount assessed as is covered by the bond or other security shall be stayed, the Director shall reconsider the assessment and, if the taxpayer has so requested in his request for reassessment, the director shall grant the taxpayer, or the taxpayer's authorized representative, an oral hearing. The Director's determination on the request for reassessment shall become final upon the expiration of 30 days from the date when the Director mails notice of his determination to the taxpayer, unless, within such 30-day period,the taxpayer files with the Tax Appeal Board an application for review of the Director's determination.
(a) In any proceeding relating to the collection of a jeopardy assessment, the finding of the Director under subsection (a) of this section shall for all purposes be presumptive evidence that the collection of the tax or the assessment or collection of the deficiency was in jeopardy.
(a) The Director may abate the jeopardy assessment if he finds that jeopardy does not exist.
§562. Bankruptcy or receivership.
(a) Upon the adjudication of bankruptcy of the taxpayer in any bankruptcy proceeding, or upon the appointment of a receiver for the taxpayer in any receivership proceeding, before any court of the United States or any state or territory or of the District of columbia, any deficiency (together with all interest, penalties,additional amounts and additions to the tax provided by law)determined by the Director in respect of any tax may be immediately assessed if such deficiency has not theretofore been assessed in accordance with law.
(a) Claims for the deficiency and for interest, penalties,additional amounts and additions to the tax may be presented for adjudication in accordance with law, to the court before which the bankruptcy or receivership proceeding is pending, despite the pendency of a protest before the Director under §523 of this title or the pendency of proceedings before the Tax Appeal Board under§544 of this title with respect to such deficiency. No protest shall be filed with the Director under §523 of this title and no petition shall be filed with the Tax Appeal Board under §544 of this title with respect to a deficiency after the adjudication of bankruptcy or appointment of the receiver.
(a) Every receiver, personal representative, trustee in bankruptcy, assignee for the benefit of creditors or other like fiduciary shall give such notice of his qualification as such to the Director as may be required by the Director.
§563. General powers of Director of Revenue.
(a) Except as otherwise expressly provided by law, the administration and enforcement of this title and Title 4 shall be performed by or under supervision of the Director of Revenue, who is authorized to make such rules and regulations and to require such facts and information to be reported as he may deem necessary to enforce this title and Title 4.
(b) The Director may prescribe the form and contents of any return or other document required to be filed under-this title or title 4.
(c) The Director, for the purpose of ascertaining the correctness of any return, or for the purpose of making an estimate of tax payable by any person, shall have power to examine, or to cause to have examined by any agent or representative designated by the director for that purpose, any books, papers, records or memoranda bearing upon the matters required to be included in the return and may require the attendance of the person rendering the return or any officer or employee of such person, or the attendance of any other person having knowledge in the premises, and may take testimony and require proof material for the Director's information with power to administer oaths to such person or persons.
§564. Closing agreements.
The Director, or any person authorized in writing by the director, is authorized to enter into an agreement in writing with any person relating to the liability of such person (or of another person for whom such person acts) with respect to any tax imposed by this title or Title 4 for any taxable period. Such agreement shall be final and conclusive, and, except upon a showing of fraud or malfeasance or misrepresentation of a material fact:
(1) the case shall not be reopened as to matters agreed upon or the agreement modified by any officer, employee or agent of this state; and
(1) in any suit, action or proceeding, such agreement, or any
determination, assessment, collection, payment, abatement, refund or credit made in accordance therewith, shall not be annulled, modified, set aside or disregarded.
Section 3. Amend Part 1, Title 30 of the Delaware Code by adding thereto a new Subchapter VI of a
new
Chapter 5 to read as follows:
"CHAPTER 5. PROCEDURE, ADMINISTRATION AND ENFORCEMENT Subchapter VI. Miscellaneous
§581. Inspection of returns by federal, state and local officials.
(a) Notwithstanding the provisions of §368 of this title, the director may permit the Commissioner of Internal Revenue of the united States, the proper officer of any state imposing a tax upon the incomes of individuals or corporations, or a financial officer designated by any municipality of this State which imposes an income tax or wage tax, or the authorized representative of any of such officers, to inspect the tax return of any taxpayer, and the director may furnish to any such officer, or such officer's authorized representative, an abstract of the tax return of any taxpayer or supply such officer or such officer's authorized representative with information contained in any return of such taxpayer or disclosed by the report of any examination or investigation of the income or return of such taxpayer, but only for the purpose of, and only to the extent necessary in, the administration of the tax laws of such other Jurisdiction:provided, however, that no such permission shall be granted, and no such information shall be furnished, to any such officer or his representative unless the statutes of such other jurisdiction grant substantially similar privileges to the Director or his legal representative. No such municipality of this State, or its representative, shall be permitted to examine a taxpayer's return unless such taxpayer shall have a place of residence, business or employment in such municipality, and no municipality or its representative shall be permitted to review any portion of a tax return filed under the authority of this title or Title 4 unless the governing body of such municipality shall have adopted an ordinance requiring:
(1) that any information obtained from, or as a result of the examination or investigation of, such tax return be kept confidential and used only for collection purposes;
(2) that the municipality reimburse to the Director the Division of Revenue's cost, if any, of acquiring such information.
(b) Notwithstanding any other provision of this section or §368of this title, the Director is specifically authorized to enter into an agreement with the Department of Labor or the Alcoholic Beverage Control Commission to provide for the inspection of any tax return filed under this title (other than Chapters 30, 51 and52) or under Title 4; provided, however that such inspection shall be pursuant to the Department of Labor's duties under Title 19 or the Alcoholic Beverage Control Commission's duties under Title 4,and may be subject to such additional requirements as may be imposed by the Director."
Section 4. Amend the title of Part I, Title 30 of the Delaware Code by striking the words," GENERAL PROVISIONS; STATE TAX AGENCIES" and substituting
in lieu thereof the words, "GENERAL PROVISIONS; STATE TAX AGENCIES; PROCEDURE AND ENFORCEMENT".
Section 5. Amend Chapter 11, Title 30 of the Delaware Code by striking the
Following sections thereof: 1164; 1171;1172; 1173;1176; 1181; 1182; 1183; 1184; 1185; 1186; 1187; 1188; 1189; 1190;1191; 1192; 1193; 1194; 1195; 1196; 1197; 1198; 1199; 1200; 1201;1202; 1203; 1205; 1206; 1207; 1208; 1209; 1211; 1212; 1213; 1214;1215; 1216; 1217; 1218; 1219; 1220; 1221; 1222; 1223; 1224; and1243.
Section 7. Amend Chapter 11, Title 30 of the Delaware Code by striking the current subchapter titles of "Subchapter IX. Procedure and Administration", and "Subchapter X. Enforcement", and redesignating "Subchapter XII.Miscellaneous" as "Subchapter IX. Miscellaneous".
Section 8. Amend Section 1204, Title 30 of the Delaware Code by renumbering it Section 1171.
Section 9. Amend Chapter 13, Title 30 of the Delaware Code by striking the following sections thereof: 1351; 1352; 1353.
Section 10. Amend Chapter 14, Title 30 of the Delaware Code by striking the following sections thereof: 1406; 1407; 1408; 1409.
Section 11. Amend Chapter 15, Title 30 of the Delaware Code by striking the following sections thereof: 1509; 1510.
Section 12. Amend Chapter 19, Title 30 of the Delaware Code by striking the following sections or subsections thereof: 1906; 1907; 1908; 1909; 1910; 1911; 1912(d) and (f); 1913; 1914; 1915; 1916.
Section 13. Amend §1904, Title 30 of the Delaware Code by deleting subsection (d) of said section and redesignating the remaining subsections of §1904 accordingly.
Section 14. Amend §§1917 and 1918, Title 30 of the Delaware Code by renumbering them §1906 and §1907, respectively.
Section 15. Amend Chapter 21, Title 30 of the Delaware Code by striking the following sections and subsections thereof: 2105;2108; 2122; 2123; and subsections (b), (d), (e), (f), (g) and (h)of §2103, and redesignating the remaining subsections of §2103accordingly.
Section 16. Amend Chapter 53, Title 30 of the Delaware Code by striking §5323 thereof.
Section 17. Amend §5409, Title 30 by deleting from the heading of said section the words, 'penalty for recording without documentary stamp'.
Section 18. Amend Chapter 54, Title 30 of the Delaware Code by striking the following sections thereof: 5411; 5413.
Section 19. Amend §5507, Title 30 of the Delaware Code, by deleting subsection (b) of said section and redesignating the remaining subsections of §5507 accordingly.
Section 21. Amend Chapter 61, Title 30 of the Delaware Code by striking the following sections thereof: 6105; 6106; 6107; 6108;6109.
Section 22. Amend Chapter 63, Title 30 of the Delaware Code by striking §6306 thereof.
Section 23. Amend Title 4, Delaware Code by adding thereto a new§583 to read as follows:
"§583. Administration of taxes
Except to the extent inconsistent with specific provisions of this title, the provisions of Chapter 5 of Title 30shall govern the assessment, collection, review and appeal of deficiencies of tax imposed by this title, and any interest and penalties thereon, and claims for refund of overpayment of taxes imposed by this title."
Section 24. Amend §351, Title 30 of the Delaware Code by deleting the number "6" as it appears therein and substituting in lieu thereof the number 11311
Section 25. Amend Title 30 of the Delaware Code by striking the following section thereof: 1242.
Section 26. Amend §329, Title 30 of the Delaware Code by deleting said section in its entirety and substituting in lieu thereof the following new §329:
"§329. Hearings and appeals.
The Tax Appeal Board shall hear all appeals from determinations of the Director of all administrative protests including, but not necessarily limited to, determinations under§§525, 544 and 561 of this title, and such other statutes granting jurisdiction to the Board as may be hereafter
enacted, and the Board may affirm, modify, or reverse any such determination."
Section 27. Amend §1214, Title 30 of the Delaware Code by striking the phrase "moneys in banks" as it appears in said section and substituting in lieu thereof the phrase "money in banks(notwithstanding the provisions of §3502 of Title 10)".
Section 28. Amend §1213, Title 30 of the Delaware Code by striking the phrase "bank accounts" as it appears in said section and substituting in lieu thereof the phrase "bank accounts,notwithstanding the provisions of §3502 or §4913(b) of Title 10".
Section 29. Amend §1214, Title 30 of the Delaware Code by adding at the end thereof the following sentence: "Notwithstanding the renewal provisions of §4711 of Title 10, any judgment obtained under this section shall automatically continue for a period of twenty years from the date of its entry."
Section 30. Amend §1914, Title 30 of the Delaware Code by adding at the end thereof the following sentence: "Notwithstanding the renewal provisions of §4711 of Title 10, any judgment obtained under this section shall automatically continue for a period of twenty years from the date of its entry."
Section 31. Amend §2123(a), Title 30 of the Delaware Code by adding at the end thereof the following sentence: "Notwithstanding the renewal provisions of §4711 of Title 10, any judgment obtained under this section shall automatically continue for a period of twenty years from the date of its entry."
Section 32. Amend §2124(a), Title 30 of the Delaware Code by striking the symbol and figure "§2103" as they appear therein and substituting in lieu thereof the phrase "§544 of this title as if a determination under this section were a determination under §523of this title."
Section 33. Sections 1, 4, 5, 7 through 24, and 26 of this Act shall be effective with regard to taxable periods commencing on or after January 1, 1992.
Section 35. Sections 3, 25, 27 and 28 of this Act shall be effective upon its enactment into law.
Section 36. Sections 29, 30 and 31 of this Act shall be effective upon their enactment into law with respect to all judgments of record from the date on which this Act shall be enacted into law and thereafter.
Section 37. If any provision of this Act or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of this Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
Section 38. Amend Chapter 13, Title 30 of the Delaware Code by adding thereto a new §1352 to read as follows:
"§1352. Same — Enforcement.
Sections 1231, 1232, 1233, and 1235 of the title shall apply to the enforcement of this chapter as if the chapter referred to therein were this chapter and the tax referred to therein were the inheritance tax."
Section 39. Amend Chapter 14, Title 30 of the Delaware Code by adding thereto a new Section 1407 to read as follows:
"§1407. Incorporation_of_Ceriain Criminal Penalties.
Sections 1231, 1232, 1233, and 1235 of this title shall apply to the enforcement of this chapter as if the chapter referred to therein were this chapter and the tax referred to therein were the gift tax."
Section 40. Sections 38 and 39 of this Act shall be effective upon its enactment into law.
Approved August 9, 1991.