PETITION FOR APPEAL OF STATE TAX ASSESSMENT

Delaware Tax Appeal Board • State of Delaware

[// GUIDANCE: This template is drafted for use in appealing a Delaware state tax assessment before the Delaware Tax Appeal Board (“Board”). Counsel should confirm the correct tribunal (e.g., the Tax Appeal Board vs. Superior Court) based on the type of tax and amount in controversy before filing.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

1.1 Title
  Petition for Appeal of State Tax Assessment (“Petition”).

1.2 Parties
 (a) Appellant: [LEGAL NAME OF TAXPAYER] (“Taxpayer” or “Appellant”);
 (b) Respondent: Delaware Department of Finance, Division of Revenue (“Department” or “Respondent”).

1.3 Recitals
 A. On [ASSESSMENT DATE], the Department issued Assessment No. [ASSESSMENT NUMBER] (the “Assessment”) against Taxpayer for the tax period ending [TAX PERIOD END DATE], assessing additional tax of $[AMOUNT], plus penalties and interest.
 B. Taxpayer disputes the Assessment on the grounds set forth herein and timely files this Petition pursuant to applicable Delaware law.
 C. Taxpayer seeks a de novo review, a stay of collection activity during the pendency of this appeal, and all other appropriate relief.

1.4 Effective Date
 This Petition is deemed filed as of [FILING DATE] (“Effective Date”) upon satisfaction of all jurisdictional prerequisites.

1.5 Governing Law
 This Petition is governed by the laws of the State of Delaware, including all applicable tax statutes, regulations, and procedural rules.

2. DEFINITIONS

For purposes of this Petition, capitalized terms below shall have the meanings assigned. Terms defined in the singular include the plural and vice-versa.

“Appeal” means the instant proceeding before the Board challenging the Assessment.

“Assessment” has the meaning set forth in Recital A.

“Board” means the Delaware Tax Appeal Board or any successor tribunal exercising appellate jurisdiction over state tax assessments.

“Burden of Proof” means the obligation imposed upon Taxpayer to establish by a preponderance of the evidence that the Assessment is erroneous in whole or in part.

“Collection Stay” means suspension of enforced collection activity against Taxpayer with respect to the Assessment pending final disposition of the Appeal.

“Final Determination” means a written decision of the Board disposing of all issues raised in this Appeal, or any final, non-appealable order of a reviewing court.

“Parties” means, collectively, Appellant and Respondent.

3. OPERATIVE PROVISIONS

3.1 Jurisdiction & Venue
 (a) Taxpayer invokes the jurisdiction of the Board pursuant to [APPLICABLE RULE/STATUTE, IF KNOWN].
 (b) Venue is proper in [COUNTY] County, Delaware.

3.2 Timeliness & Exhaustion
 This Petition is filed within the statutory period—i.e., within [NUMBER] days after the Assessment notice was mailed—and after exhaustion of all administrative reconsideration rights.

3.3 Statement of Issues Presented
 (a) Whether the Department erred in computing taxable income for the period at issue.
 (b) Whether penalties were improperly imposed.
 (c) Whether interest was improperly computed.
 (d) Any additional issue expressly set forth in Schedule 1 attached hereto.

3.4 Grounds for Appeal
 (a) Factual Error: [DESCRIBE FACTUAL BASIS].
 (b) Legal Error: [DESCRIBE LEGAL BASIS].
 (c) Constitutional/Procedural Error: [DESCRIBE].

3.5 Relief Requested
 Taxpayer respectfully requests that the Board:
 (i) Redetermine the Assessment and abate tax, penalties, and interest in the amount of $[AMOUNT];
 (ii) Direct issuance of a refund (with statutory interest) for overpayments, if any;
 (iii) Order a Collection Stay for the duration of this proceeding; and
 (iv) Award any further relief deemed just and proper.

3.6 Preservation of Records
 Taxpayer shall maintain and, upon request, produce all documents relied upon in this Appeal.

4. REPRESENTATIONS & WARRANTIES

4.1 Taxpayer Representations
 (a) Authority: Taxpayer is duly organized and in good standing under the laws of [STATE] and authorized to file this Petition.
 (b) Accuracy: All factual statements contained herein and in attached schedules are true, correct, and complete to the best of Taxpayer’s knowledge.
 (c) Compliance: Taxpayer has complied with all procedural prerequisites to invoke the Board’s jurisdiction.

4.2 Survival
 The representations and warranties set forth in Section 4.1 shall survive any dismissal or withdrawal of this Petition and any Final Determination.

5. COVENANTS & RESTRICTIONS

5.1 Cooperation
 Taxpayer shall promptly respond to reasonable discovery requests and comply with all Board orders.

5.2 Good-Faith Settlement Efforts
 The Parties agree to engage in good-faith discussions to resolve this Appeal, including non-binding mediation if ordered by the Board.

5.3 Payment of Uncontested Amounts
 [OPTIONAL] Taxpayer shall remit any uncontested portion of the Assessment within [NUMBER] days of filing this Petition.

5.4 Collection Stay
 The Department shall refrain from enforced collection actions related to the Assessment during the pendency of this Appeal, except as otherwise ordered by the Board or a court of competent jurisdiction.

6. DEFAULT & REMEDIES

6.1 Events of Default
 (a) Failure of either Party to comply with a Board order after notice and a 10-day cure period.
 (b) Failure of Taxpayer to maintain the Collection Stay bond, if required under Section 7.2.

6.2 Remedies
 (a) Upon a default by Taxpayer, the Department may resume collection activity subject to Board approval.
 (b) Upon a default by the Department, Taxpayer may petition the Board or Delaware Superior Court for injunctive relief, costs, and attorneys’ fees.

6.3 Attorneys’ Fees
 The prevailing party shall be entitled to reasonable attorneys’ fees and costs as determined by the Board.

7. RISK ALLOCATION

7.1 Burden of Proof
 Taxpayer acknowledges and accepts the Burden of Proof in accordance with Delaware law.

7.2 Security for Collection Stay
 [OPTIONAL] Taxpayer shall post a bond or provide other security acceptable to the Department in the amount of $[AMOUNT] to secure payment of any portion of the Assessment ultimately sustained.

7.3 Limitation of Liability
 The Department’s monetary exposure is capped at (i) the amount of the Assessment plus statutory interest, or (ii) the amount of any overpayment determined refundable, whichever is applicable.

7.4 Indemnification
 Taxpayer shall indemnify and hold the Department harmless from third-party claims arising from Taxpayer’s use or disclosure of confidential tax information produced in discovery, except to the extent caused by the Department’s willful misconduct.

8. DISPUTE RESOLUTION

8.1 Governing Law
 This Petition and all related proceedings shall be governed by the internal laws of the State of Delaware without regard to conflict-of-law rules.

8.2 Forum Selection
 Exclusive jurisdiction lies with the Delaware Tax Appeal Board, subject to judicial review by the Delaware Superior Court.

8.3 Limited Arbitration Provision
 At any time prior to the commencement of the evidentiary hearing, the Parties may, by written agreement, submit any discrete issue to confidential, non-binding arbitration under the Delaware Uniform Arbitration Act.

8.4 Jury Waiver
 To the extent a right to trial by jury might otherwise exist in any judicial review of this Appeal, the Parties knowingly waive such right except where unavailable under Delaware law.

8.5 Injunctive Relief
 Nothing in this Section shall preclude either Party from seeking preliminary or permanent injunctive relief—particularly to maintain or enforce the Collection Stay—before the Delaware Superior Court.

9. GENERAL PROVISIONS

9.1 Amendments
 This Petition may be amended only by written motion granted by the Board.

9.2 Assignment
 Neither Party may assign rights or delegate duties arising under this Petition without prior written consent of the other Party and the Board.

9.3 Severability
 If any provision of this Petition is held invalid or unenforceable, the remaining provisions shall remain in full force, and a valid, enforceable provision shall be substituted that most nearly reflects the original intent.

9.4 Entire Agreement
 This Petition, including all schedules and attachments, constitutes the entire statement of claims and defenses between the Parties regarding the Assessment.

9.5 Electronic Signatures
 Signatures transmitted by electronic means (e.g., PDF, DocuSign) shall be deemed original and binding.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties execute this Petition as of the Effective Date.

APPELLANT

[LEGAL NAME OF TAXPAYER]

By: _______________________________
Name: [AUTHORIZED SIGNATORY]
Title: [OFFICER TITLE]
Date: ____________________________

RESPONDENT

DELAWARE DEPARTMENT OF FINANCE, DIVISION OF REVENUE

By: _______________________________
Name: [AUTHORIZED AGENT]
Title: [POSITION]
Date: ____________________________

(Seal, if required)

[// GUIDANCE: Verify whether notarization or witness attestation is required for filings before the Board. Attach schedules (e.g., computational schedules, evidentiary exhibits) as necessary. File the executed Petition along with the required filing fee and proof of timely mailing/delivery.]