Data thieves don’t take a break during the holidays, and the Delaware Division of Revenue wants to warn taxpayers that the IRS is seeing a large increase in bogus email schemes that seek to steal money or tax data.

The most common way for cybercriminals to steal money, bank account information, passwords, credit cards and Social Security numbers is to simply ask for them. Every day, people fall victim to phishing scams or phone scams that cost them their time and their cash.

Here are a few steps taxpayers can take to protect against phishing and other email scams. When reading emails, people should:

• Be vigilant and skeptical. Never open a link or attachment from an unknown or suspicious source. Even if the email is from a known source, the recipient should approach with caution. Cybercrooks are good at acting like trusted businesses, friends and family. This even includes the IRS and others in the tax business.
• Double check the email address. Thieves may have compromised a friend’s email address. They might also be spoofing the address with a slight change in text. For example, using narne@example.com instead of name@example.com. Merely changing the “m” to an “r” and “n” can trick people.
• Remember that neither the Division of Revenue nor the IRS initiates spontaneous contact with taxpayers by email to ask for personal or financial information. This includes asking for information via text messages and social media channels. The IRS does not call taxpayers with aggressive threats of lawsuits or arrests.
• Not click on hyperlinks in suspicious emails. When in doubt, users should not use hyperlinks and go directly to the source’s main web page. They should also remember that no legitimate business or organization will ask for sensitive financial information by email.
• Use security software to protect against malware and viruses found in phishing emails. Some security software can help identity suspicious websites that are used by cybercriminals.
• Use strong passwords to protect online accounts. Experts recommend the use of a passphrase, instead of a password, use a minimum of 10 digits, including letters, numbers and special characters.
• Use multi-factor authentication when offered. Two-factor authentication means that in addition to entering a username and password, the user must enter a security code This code is usually sent as a text to the user’s mobile phone. Even if a thief manages to steal usernames and passwords, it’s unlikely the crook would also have a victim’s phone.
• Report phishing scams. Taxpayers can forward suspicious emails to phishing@irs.gov.

If you have questions, or suspect someone is trying to commit tax fraud, you can also fight back by contacting the Division of Revenue’s Tax Fraud Hotline at (302) 577-8958.

The Delaware Division of Revenue would like to remind businesses subject to the Hazardous Substance Cleanup Act (HSCA) that a new tax rate will being going into effect on January 1, 2019. The new adjustable rate for 2019 will be 1.5244%, and will apply to the taxable gross receipts from the sale of petroleum or petroleum products. The Division of Revenue will be updating this rate in their online system before the effective date of January 1, 2019.

The tax rate through December 31, 2018 is 0.9%, but recent legislation has adjusted the rate so that it will be based on a lookback period starting January 1, 2019. The new adjustable rates cannot be lower than 0.675% or greater than 1.675%, and are calculated by multiplying 0.9% (the original rate) by a fraction – the numerator of which is $15,000,000 and the denominator of which is the total collections in the fund during the lookback period (July 1 to June 30 of the prior year).

The HSCA was passed by the Delaware General Assembly in July of 1990 to ensure funding for the cleanup of facilities with a release or imminent threat of release of hazardous substances. The Department of Natural Resources and Environmental Control has identified over 700 sites in Delaware as potential hazardous substances release sites.

If you have questions about the new adjustable tax rate, please contact the Delaware Division of Revenue at (302) 577-8205.

The Delaware Division of Revenue online business license system is now open for 2019 renewals. Any business whose license expires on December 31, 2018 may visit de.gov/renew to renew using a credit card, debit card, or by direct debit from your bank account. This convenient online service is available 24 hours a day, seven days a week – and it’s fast, easy, and secure.

More than half of Delaware’s licensed businesses use the online renewal service, which is convenient, and allows you to print a temporary license directly from your computer – a benefit for any business that requires immediate proof of current licensing, such as contractors and businesses receiving government payments. Additionally, you may elect to renew your license for one year or for three years.

To complete the online renewal, you will need your Tax ID Number as well as your Business License Number. You’ll find your Business License Number on your current license or on the annual License Renewal Notices that will be sent to businesses later in November.

For more information, please contact the business license office at (302) 577-8778 or BusTax@delaware.gov.

In an effort to reduce ongoing outstanding tax balances, Delaware Division of Revenue Director Jennifer R. Hudson has announced publication of the Top 100 Delinquent Individual and Business Taxpayers lists to the State’s Delinquent Taxpayers website. By statute, the Division is required to post the names of the individuals and businesses who owe the most unpaid taxes to the state.

The published lists include the top business and personal taxpayers, each of whom owes a tax balance of more than $1,000, who were not on the last list that was published, and against whom the Division has filed a judgment. Collectively, the taxpayers included on the lists owe more than $3.6 million to the State.

Taxpayers who have entered into payment agreements with the Division of Revenue, who have filed for bankruptcy protection or who have a pending appeal of a proposed liability are excluded from the published lists.

“The Division of Revenue is committed to collecting all amounts that are owed to the State, and using all tools that are available to us to do so.” Hudson says. “While a large percentage of taxpayers resolve their liabilities to avoid having their names posted online, many others will wait until their names are actually published to resolve their accounts.”

If you have questions regarding the delinquent taxpayer lists, please contact the Delaware Division of Revenue’s Account Management Department at (302) 577-8785.

The Division of Revenue is aware that some business taxpayers may be struggling with the complexity of changes resulting from recent federal tax reform. For those businesses filing in multiple states, many of which have different rules and deadlines, the complexity is compounded. The Division recognizes that some taxpayers may have trouble meeting Delaware’s filing deadline because the extended due date of Delaware income tax returns coincides with the extended due date for federal returns.

As a result, the Division will consider requests for abatement of penalties for late filing, with reasonable cause, of any Forms 1100, 1100-S, 300, and 400 on a case-by-case basis – provided those returns are filed on or before November 15, 2018. Please note: you should not submit a request for abatement until after you have received a notice proposing the assessment of penalties.

The taxpayer’s request for abatement of late filing penalties due to reasonable cause should be submitted by email to: taxconferee@delaware.gov, or in writing to:

Campbell Hay, Esquire
Tax Conferee
Delaware Division of Revenue
P. O. Box 8714
Wilmington, DE 19801