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

Today, Division of Revenue Director Patrick Carter has announced the next posting of Delaware’s 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.

“Posting these lists puts pressure on those in violation,” said Carter, “Anyone with access to the Internet can view the name, address, and amount of tax owed by some of our most chronic delinquent taxpayers, helping Delaware recoup outstanding balances with minimal expense.” Larger balances are targeted first for publication, and 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.

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.

Since its inception in February 2007, the Delinquent Taxpayers webpage has collected in excess of $12.5 million in back taxes from those whose names were published, or who were advised that they qualified to have their names published online.

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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 Returns Due May 2, 2016

Division of Revenue Director Patrick T. Carter has announced that Delaware tax season filing deadline this year is Monday, May 2, 2016. Citizens are encouraged to file their 2015 State of Delaware Personal Income Taxes or file an extension to Monday, October 17, 2016 by using our online services at www.delaware.gov.

Online filing offers many advantages, and Delaware urges taxpayers to electronically file their returns. Refunds from electronically filed returns are issued on average in less than nine days, while refunds from paper-filed returns average more than 14 days.

Delaware offers the following electronic filing options:

  • 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.
  • 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 2015 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, 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


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


Successful State Bond Sale Saves Taxpayers Over $8M

Wilmington, DE – Finance Secretary Thomas J. Cook announced today that Delaware successfully sold $236 million in triple-A-rated general obligation bonds in Tuesday’s annual bond sale, effectively netting a savings of over $8 million for Delaware taxpayers.

With triple-A ratings recently re-affirmed by Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s Rating Services, Delaware was able to obtain some of the best pricing relative to the triple-A index in recent history, even in a volatile market. “Credit quality matters and translates into reduced interest costs to taxpayers,” said Cook. “In this case, the triple-A rating saved Delaware taxpayers $5.8 million when compared to double-A rates.”

Of the $236 million of bonds sold, $36 million sold as Series C represents a refinancing at lower rates, saving taxpayers more than an additional $3 million.

“It is our responsibility to ensure we are using taxpayer dollars efficiently and maximizing the return on our investments,” said Governor Jack Markell. “Our triple-A rating, and the benefits that come with it, are the result of the fiscal discipline and prudent financial management that have become Delaware’s hallmark.”

Delaware’s combined cost of capital on this loan was 2.32%. “While not the lowest ever, it is lower relative to other high quality issuers that have been in the market recently,” said Cook. The state received seven bids; awarding Morgan Stanley &Co., LLC as the highest bidder on Series A, J.P. Morgan Securities LLC on Series B, and Bank of America Merrill Lynch on Series C.

The remaining $200 million, Series A and B, represents various capital projects – including over $100 million in school construction projects, improvements to the Veteran’s Home, National Guard readiness facilities, the Port of Wilmington, libraries around the state, and the rehabilitation of park and wildlife areas.

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