Delaware refund interception occurs when a taxpayer’s state income tax refund is applied to satisfy certain outstanding debts. These debts may include unpaid child support, delinquent state or federal taxes, or other legally enforceable obligations. The process is initiated by a government agency or court order and is not under the taxpayer’s direct control.
When Refund Interception Happens
- Refund Interception is a collection procedure which may happen when a debt is owed to a state or federal agency
- Taxpayers tax refund will be directed to pay the debt instead of processed to the taxpayer
- Should an excess of refund be found, the remaining amount would be processed to the taxpayer
How It Is Reported
- Taxpayer will receive notification from the State Director of Revenue regarding the reduction in tax refund amount
What Taxpayers Should Do
- You have the right to protest the decision by written correspondence
- Written protest and supporting documents should be submitted to the Director for review
- Instructions should be provided to you on the notification received from the state
Source:
Delaware Resident Income Tax Return Instructions (PIT-RES)
Delaware Non-Resident Income Tax Return Instructions (PIT-NON)
Delaware Regulations - Title 12 202
Disclaimer: Always verify details with the official forms and instructions from the Delaware Division of Revenue or your local Department of Revenue. For complex situations, consult a tax professional or attorney.