I agree with you, the tax issue is really not important. I say this because this report is not a real time report. Companies a lot time are late filing quarterly payments for various reasons even when a CPA firm is handling the filing. Again I don't see franchise tax as being a big deal. It is based on a 3 factor percentage calculation, sales, payroll, property. I sure don't see how they would even owe any tax to Delaware. Do they have an office there? Do they have employees living there? Do they have destination based sales there? If the answer is no then they do not owe franchise tax in Delaware.