The Delaware Division of Revenue will extend certain deadlines for filing individual and business tax returns, as well as for making certain tax payments for taxpayers who have been directly impacted by the severe storms and flooding caused by Hurricane Harvey.

“The Division of Revenue recognizes the impact that Hurricane Harvey has had on taxpayers and will take all steps necessary to assist hurricane victims who need assistance with Delaware’s tax filing obligations,” said Division of Revenue Director, David Gregor.

Delaware will follow the rules outlined by the Internal Revenue Service in news release IR-2017-135. The extended tax return filing due dates apply to taxpayers located in the impacted disaster areas identified in the IRS notice. The tax relief postpones various tax filing deadlines that occurred starting on Aug. 23, 2017 thru January 16, 2018 to January 31, 2018. This includes an additional filing extension for individual taxpayers with valid extensions to Oct. 16, 2017, and businesses with valid extensions to Sept. 15, 2017.

To avoid a penalty assessment for late filing, taxpayers should submit a written request seeking an additional extension via email to Jeffry.schott@delaware.gov. If your request is based upon the tax records being located in the disaster area, please include the address where those tax records are located. Business taxpayer requests should be on company letterhead and signed by a company official.

Division of Revenue Director David Gregor has announced that Delaware tax season filing deadline this year is Monday, May 1, 2017. Citizens are encouraged to file their 2016 State of Delaware Personal Income Taxes or file an extension to Monday, October 16, 2017 by using our online services at www.delaware.gov.

Delaware urges taxpayers take advantage of online filing, with refunds from electronically filed returns being issued on average in less than nine days. Refunds from paper-filed returns average more than 14 days.

The following electronic filing options are available:

• 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 1st deadline. Taxpayers may pay their State of Delaware taxes on this system using a credit card or by debiting their bank account.
• Those who prefer tax-preparation software can electronically file their federal and state income tax returns for a fee, though these products also offer free-filing options for Delaware taxpayers who meet the following qualifications:
  • Adjusted gross income 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 Earned Income Tax Credit (EITC)

For paper-filed returns, the State uses a modernized processing system that identifies tax filings based on the type of return, i.e. refund or balance due. Any taxpayer who files a 2016 tax return using a previous-year return, or who modifies the paper return in some way will experience significant delays. Paper tax returns are available for download at www.revenue.delaware.gov.

Because Delaware does not maintain reciprocal 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, 2017 for any job worked during the 2016 calendar year. Those who haven’t received a W-2 by January 31 should contact their employer.

The Delaware Division of Revenue would like to update local businesses about pending legislation to ensure that the deadline for the current year tentative return of “C” corporations will be uniform for all taxpayers.

The Delaware legislature is considering legislation that will adjust the due date for C corporations’ tentative returns to April 15, or the fifteenth day of the fourth month of the current income year for fiscal year taxpayers, for tax years beginning after December 31, 2016. As a result, the Division of Revenue is releasing Technical Information Memorandum 2017-2, available on our website here: http://revenue.delaware.gov/information/tims/tim_2017-02.pdf.

Anyone filing business-related tax returns should be aware that deadlines for filing returns with the IRS have changed for tax years beginning after December 31, 2015. The Division of Revenue previously issued Technical Information Memorandum (TIM 2017-1: http://revenue.delaware.gov/information/tims/tim_2017-01.pdf) granting all affected taxpayers an extension of time to the date on which their Federal return is due, exclusive of extensions, to file their Delaware return.

The deadline for a C corporation’s tentative return was not affected by TIM 2017-1, which means that a C corporation’s tentative return is currently due on the first day of the fourth month of the corporation’s current income year – or April 1, 2017 for calendar year corporate taxpayers.

The Director of the Division of Revenue has broad discretion to grant reasonable extensions of time for the filing of any return – and in the interest of efficient tax administration, because of the pending legislation, the Director will grant all C corporations required to file a tentative return for a tax year beginning after 12/31/16 an automatic extension of time to the fifteenth day of the fourth month of the current income year, or to April 17, 2017, for a calendar year taxpayer, to file the taxpayer’s C corporation tentative return.

Visit revenue.delaware.gov or call (302) 577-8205 for more information.

The Division of Revenue wants to provide Delawareans with information about one of the most common and costly forms of identity theft – tax return fraud. Tax return fraud occurs when someone uses your Social Security number to file a tax return, and claims a fraudulent refund.

It’s important that citizens be aware of the steps they can take if they suspect or have been informed that they have been a victim of tax-related identity theft.

“As criminals continue to develop increasingly sophisticated ways to steal your personal information, our goal is to identify and apply safeguards that will better protect taxpayers and fight identity theft,” said Division of Revenue Director, David Gregor. “Identity theft places a burden on its victims, and presents special challenges for businesses, organizations and government agencies.”

The Division of Revenue has provided a new web resource that can help citizens who believe they may have been a victim of a tax-related identity theft.

The Warning Signs of Identity Theft

• You receive correspondence requesting tax return information for a return that you have not filed yet.
• You are notified that a return has already been filed using your name or social security number.
• You receive a balance due or refund offset notice for a tax year in which have not yet filed a tax return.

To learn more, visit the Identity Theft and Victim Assistance page at revenue.delaware.gov.

The Delaware Division of Revenue would like to inform local business regarding the following changes to due dates for business partnerships and corporations.

Internal Revenue Code now requires that:

• Partnership returns are due on or before the 15th day of the third month following the expiration of the taxable period (March 15 for calendar year taxpayers).
• S corporation returns are due on or before the 15th day of the third month following the expiration of the taxable period (March 15 for calendar year taxpayers). This has not changed from prior years.
• Returns for C corporations are now due on or before the 15th day of the fourth month following the expiration of the taxable period (April 15 for calendar year taxpayers).

Delaware has issued TIM 2017-1 (http://revenue.delaware.gov/information/tims/tim_2017-01.pdf) granting an automatic extension of time to all C corporations to the due date of the corporation’s federal income tax return, without regard to extensions. The Delaware due dates for partnership and S corporation returns have not changed. As a result, the due dates for Delaware business returns for the 2016 tax year are as follows:

• Partnership returns are due on or before the 30th day of the fourth month following the expiration of the taxable period (April 30 for calendar year taxpayers).
• S corporation returns are due on or before the 30th day of the third month following expiration of the taxable period (March 30 for calendar year taxpayers).
• Returns for C corporations are now due on or before the 15th day of the fourth month following the expiration of the taxable period. Because of federal holidays, this will be April 18, 2017 for calendar year taxpayers.

Delaware will be enacting legislation in 2017 to adopt the same due dates for Delaware’s business tax returns, effective for tax years beginning after December 31, 2016.

If you have questions about the due date of your business return, you can find specific information on our website (http://www.revenue.delaware.gov/services/BusServices.shtml) or by contacting us at (302) 577-8205.