Delaware is often thought of as a safe haven from state taxes. Often that's true; sometimes it's not.
Consider the following:
Delaware has a quirky corporate income tax statute that has traps for the unwary, especially companies with significant swings between income and loss, and companies that recognize large allocable gains. We have approaches to deal with these issues.
Delaware has gross receipts taxes on manufacturing, wholesaling, and other industries that can cause tax headaches. We have significant experience with Delaware's gross receipts taxes. Delaware has recently won some important court cases involving these taxes, so we expect the Division of Revenue may start focusing on compliance with these taxes to enhance revenue.
Delaware has a one-of-a-kind bank franchise tax. We have experience representing clients in bank-franchise tax matters, including successful settlement before the bank commissioner.
Delaware is infamous for its aggressive application of its unclaimed property law. Our lawyers understand this system, from audit technique through litigation and settlement. Our firm's office in Wilmington and our 14 state tax lawyers in Philadelphia make us especially well-suited to handle intensive Delaware tax litigation. (We believe, after all, that unclaimed property statutes have evolved into just another form of tax.) We are also involved in voluntary disclosure projects. It is important to handle these projects carefully—Delaware recently settled a voluntary disclosure matter that "went bad." In this regard, our lawyers have extensive exposure to the audit methods of Delaware’s principal contract auditor, Kelmar, and have conducted intense investigations into their methods, including attending the training courses they give to their auditors. Our State Tax team is in the unique position to actively handle your Delaware unclaimed property audit and appeal.
Delaware State Tax Intelligence
As part of our full service for clients with Delaware tax problems, we have a unique, fully searchable database of unpublished authority, including decisions of the Tax Appeals Board going back to the early 1970s, unpublished trial court decisions, and unpublished legal briefs. We also maintain regular and direct lines of communication with high-level state officials involved in all areas of Delaware taxation.
We combine our experience, unique collection of information, and close working relationships with the state to serve our clients' Delaware tax needs.