Revenue Announces Threshold Updates Under The Delaware Competes Act

Statewide, DE – Under the new Delaware Competes Act, the Division of Revenue has announced the first of what will become annual adjustments to filing thresholds for small businesses and employers. These threshold adjustments are intended to recognize small businesses’ unique challenges by simplifying compliance and potentially reducing filing frequencies.

The safe harbor provision for small businesses was enacted in 1984, but because the original qualification thresholds had not been adjusted in recent years, many small businesses no longer qualified. “Updating thresholds throughout Delaware’s tax code will reduce administrative and compliance costs for small businesses and the Division of Revenue alike,” said Department of Finance Deputy Secretary, David Gregor. “It also increases the tax code’s predictability and fairness for small businesses; cutting filing frequencies for roughly 1,000 small business gross receipts taxpayers and 2,000 small business withholding filers.”

As part of its annual notification process, the Division of Revenue will notify businesses and employers regarding their filing responsibilities for the upcoming year. The Delaware Competes Act also mandates that thresholds are subject to an annual inflation adjustment. As a consequence, the thresholds’ future effectiveness will not erode over time, and small businesses will continue to reap the Delaware Competes Act’s benefits for years to come.

New threshold information can be found by visiting the Division of Revenue web site at http://revenue.delaware.gov/services/Business_Tax/Threshold_Update_102016.pdf.

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Leslie A. Poland
Public Information Officer
Delaware Department of Finance
(302) 577-8522
leslie.poland@delaware.gov


Revenue Publishes List of Top Delinquent Taxpayers

Statewide, DE — Delaware Division of Revenue Director Patrick Carter has announced the posting another list of top 100 delinquent individual and business taxpayers on the state’s Delinquent Taxpayers website.

The website posts the names of people and businesses who owe unpaid taxes to the state for public view. By legislative order, larger balances are targeted first for publication. Each quarter the next 100 consecutive business tax and 100 consecutive personal unresolved tax balances over $1,000 are posted to the site. Delinquent taxpayers can avoid appearing on the list by paying their balance in full or making payment arrangements.

“Posting these violators online leads to public scrutiny, and puts pressure on those in violation,” Carter says. “These lists help Delaware recoup outstanding balances while incurring minimal expense for taxpayers.”

Since its inception in February 2007, the Delinquent Taxpayers webpage has collected in excess of $11.9 million in back taxes from those whose names were published, or who were advised that they qualified to have their names published online.

In order to meet the criteria for having your name posted to the Delaware Delinquent Taxpayers site, individuals and businesses must have already received a judgment for unpaid taxes. They are then notified by mail that their names may be posted online, and given 60 days to respond. Delaware is one of over 20 states and the District of Columbia to publish delinquent taxpayers’ names online.

The names of those who enter into a payment agreement with the Division of Revenue or pay their balance in full are either not published or will be removed from the Delinquent Taxpayers list, depending on when the agreement takes place. Taxpayers who have filed for bankruptcy protection or who have incurred a liability that is being appealed are excluded from the published list until their case has been resolved.

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Leslie A. Poland
Public Information Officer
Delaware Department of Finance
(302) 577-8522
leslie.poland@delaware.gov


Delaware Personal Income Tax Season Begins January 19

Division of Revenue Director Patrick T. Carter has announced that Delaware tax season will begin Tuesday, January 19, 2016. Citizens are encouraged to file their 2015 State of Delaware Personal Income Taxes online at www.delaware.gov. This year’s filing deadline is Monday, May 2, 2016. Online filing offers many advantages, and Delaware urges taxpayers to electronically file their returns. Refunds from electronically filed returns are issued on average within 2 weeks, while refunds from paper-filed returns average over seven weeks. Last year, the average time to issue a refund for all tax filing methods combined was just over 20 days.

Delaware offers the following electronic filing options:

  1. Those who don’t need tax preparation software can file for free on the Delaware Division of Revenue website. This online system is extremely user-friendly and available 24/7. The system also allows taxpayers to file their returns and then schedule any payment due closer to the May 2nd deadline. Taxpayers may pay their State of Delaware taxes on this system using a credit card or by debiting their bank account.
  2. Those who prefer tax-preparation software can electronically file their federal and state income tax returns for a fee, although these products also offer free-filing options for Delaware taxpayers who meet the following qualifications:
  • Adjusted gross income is less than the software’s established means criteria; or
  • Active-duty military with an adjusted gross income of $60,000 or less (including Reservists and National Guard); or
  • Qualify for the Federal Earned Income Tax Credit (EITC)

For paper-filed returns, the State uses a modernized processing system that identifies tax filings based on the return type. Any taxpayer who files a 2015 tax return using a previous-year return, or who modifies the paper return in some way, will experience significant delays. Paper tax returns will be available at local libraries or for download at www.revenue.delaware.gov.

Because Delaware does not maintain reciprocity agreements with other states; it is important for anyone who is not a Delaware resident – but who has worked in Delaware – to understand that they must file a Delaware tax return. Delaware Residents who work out-of-state are required to file returns with Delaware in addition to the state where they worked.

By law, Delaware employees should receive their W-2 employment forms by January 31, 2016 for any job worked during the 2015 calendar year. Those who haven’t received a W-2 by January 31 should contact their employer.

 

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Leslie A. Poland
Public Information Officer
Delaware Department of Finance
Division of Revenue
(302) 577-8522
leslie.poland@delaware.gov


Newest Online List Of Delinquent Delaware Taxpayers

Statewide – Delaware Division of Revenue Director Patrick Carter announced today the posting of another list of top 100 delinquent individual and business taxpayers at on the Delinquent Taxpayers website.

Since the Delaware Delinquent Taxpayers website went live in February 2007, the state has collected more than $8,600,000 in back taxes from taxpayers whose names were posted or were advised they qualified to have their name posted. With the posting of this round of Delaware’s delinquent taxpayers Carter says he expects Delaware to see even more money in the weeks to come.

The Delaware Delinquent Taxpayers website posts for public view the names of people and businesses who owe unpaid taxes to the state. By legislative order, larger balances were targeted first for publication. Each quarter the next 100 business taxpayers and 100 personal taxpayers who have balances over $1,000 are posted to the site.

“This site is extremely successful,” Carter says. “People don’t want their names posted online for not paying taxes. Delaware is collecting outstanding debt that might otherwise require the State to raise revenue.”

Rep. Deborah Hudson, who proposed the program and sponsored the legislation that established the posting requirements for Delaware’s delinquent taxpayers, agrees that the Delaware Delinquent Taxpayers site is a genuine success.

“When you consider the challenges facing the people of Delaware, I am proud to have successfully proposed and sponsored programs like this that, without raising taxes, collect amounts that are due to the State and help out in these trying fiscal times.”

Since its inception in February 2007, the Delinquent Taxpayers webpage has encouraged Delaware taxpayers to resolve their unpaid tax bills. The new lists will name individuals and businesses that, combined, owe over $3.6 million to the State.

To meet the criteria for posting to the Delaware Delinquent Taxpayers site, individuals and businesses must have already received a judgment for unpaid taxes. They are then notified by mail that their names may be posted online and given 60 days to respond. The names of those who enter into a payment agreement with the Division of Revenue or pay their balance in full are either not published or will be removed from the Delinquent Taxpayers list, depending on when the agreement takes place. Taxpayers who have filed for bankruptcy protection or have incurred a liability that is being appealed are excluded from the published list until their case has been resolved.

“A large percentage of outstanding taxpayers resolve their liabilities to avoid having their names posted online,” Carter says. “However, others wait until their names are actually posted and then resolve their accounts. Ultimately, this site provides the motivation some people need to finally pay their tax debt.”

Delaware is one of over 20 states and the District of Columbia to publish delinquent taxpayers’ names online.

Contact:
Valerie Watson
Delaware Department of Finance
Valerie.watson@delaware.gov


State of Delaware experiences fraudulent tax-filing attempts

Statewide – Division of Revenue Director Patrick Carter has announced today that the Delaware Division of Revenue has experienced several attempts by unknown persons to file fraudulent income tax returns for the 2014 filing season using stolen identities. The fraudulent filing attempts have originated from data that was compromised through a third-party commercial tax-preparation software database. All information in Delaware’s tax database remains secure and at no point was Delaware’s online filing system compromised.

To date, 19 states – including Delaware – have reported receiving fraudulent filing attempts through the same third-party software. Delaware is also flagging a number of returns as “potentially fraudulent” based on criteria found on the fraudulent returns. Any Delaware taxpayer who filed state income tax returns electronically for 2014 or years prior through a third-party software may be affected. The Division of Revenue is working to identify victims and will alert them individually of any potential fraud and/ or identity theft.

“Protecting the personal information of Delaware taxpayers is our greatest priority right now,” Carter said. “As soon as our internal controls alerted us to the increase in fraudulent attempts, we implemented a number of safeguards to lessen any potential fraud from these return filings. We are confident that we are taking all necessary steps to ensure the safety of our taxpayers.”

Due to the new safeguards, some taxpayers may experience a delay in receiving their State of Delaware refund. The Division of Revenue is working to ensure all taxpayers receive their proper refund as promptly as possible, said Carter.

Members of the public who believe they have been victims of Delaware Income Tax fraud or who have questions about suspicious activity are urged to call 302-577-8200. Taxpayers may also verify the current status of their state income tax return by going to http://revenue.delaware.gov.

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Media Contact:
Angela Moffett-Batty
Delaware Department of Finance
angela.moffett-batty@delaware.gov
Phone: (302) 577-8522