Delaware Code
Subchapter IV. Secretary of Finance; Powers and Duties
§ 352. Accounts receivable.

The Secretary of Finance may authorize the Director of Revenue to write off and remove from active collection any account receivable arising from the assessment of any tax or addition to tax if it is determined that the account is uncollectible. An account is uncollectible if the Director finds after reasonable investigation that the potential recovery or administrative costs of collection would not warrant further collection efforts and:

(1) The debtor has received a discharge in bankruptcy with respect to the taxable periods in question;
(2) The debtor is deceased and reasonable additional collection measures will not cause the debt to be collected from the assets of the debtor or the debtor's estate;
(3) The taxes are debts of a business that is no longer in business and the Director is unable to find that either the business or any other person responsible for the debts has assets from which the debt may be paid; or
(4) The debt has been outstanding on the records of the Division of Revenue for more than 6 years.

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