Delaware’s Division of Revenue will begin processing 2020 individual income tax returns on Friday, February 12, 2021. Delaware opens its filing season in tandem with the IRS, who have been delayed this year due to programming required in administering economic impact payments. Taxpayers may still file in advance of this date, and returns will be held until processing begins on February 12.

In an effort to combat refund fraud, the Division of Revenue will be holding all personal income tax refunds until February 25, 2021. For faster turnaround times, citizens are encouraged to file their taxes online at de.gov/filetax or through other electronic filing programs and request direct deposit. This year’s filing deadline for personal income tax will be Friday, April 30, 2021.

Taxpayers should be aware that Delaware does not maintain reciprocity agreements with other states, therefore is important that anyone who is not a Delaware resident, but who has worked in Delaware, understands 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, 2021 for any job worked during the 2020 calendar year. Those who haven’t received a W-2 by January 31^st should contact their employer.

For filing information and more, please visit revenue.delaware.gov.

Fourth annual report highlights State accomplishments

WILMINGTON, Del. – Governor John Carney on Thursday released the fourth annual report of the Government Efficiency and Accountability Review (GEAR) Board. Governor Carney established GEAR by Executive Order in February of 2017 in order to identify ways for state government to operate more efficiently, improve the delivery of state services, and provide cost savings over the long term.

Read the 2020 annual report for full details.

“Over the last four years under the GEAR umbrella, all three branches of government have worked on initiatives to improve the quality and efficiency of how we deliver state services,” said Governor Carney.  “As a result, state government was much better positioned to address the financial, human resource, customer service, and technology challenges presented by the pandemic – and we will emerge even stronger.”

The report highlights key accomplishments across State government in 2020, including:

• Saving millions of dollars for taxpayers through lease restructurings, banking services consolidation, employee health care benefit initiatives, and energy efficiency projects.
• Adopting COVID-safe practices in the State workplace that have also saved millions in travel costs and thousands of person-hours through telework, video conferencing, virtual hearings and public meetings, and virtual employee training and on-boarding.
• Doubling the GEAR P3 Innovation and Efficiency Award program that rewards state employees who demonstrate successful implementation of innovative, cost saving, continuous improvement projects.
• Unveiling a Strategic Plan for the State’s largest agency, the Department of Health and Social Services (DHSS), that promotes continuous improvement and increased efficiencies with a focus on a person-centered approach to service delivery.
• Expanding high-speed, broadband Internet service in Delaware’s underserved areas through public-private partnerships.

The Board report, released each December, also provides policy and budgetary recommendations for possible inclusion in the Governor’s agenda and budget for Fiscal Year 2022. Governor Carney’s budget proposal will be released on January 28, 2021. Additional viewing information will be announced closer to the event.

Recommendations in the 2020 Report include:

• Supporting legislation and policies that enable agencies to make permanent certain efficiencies achieved during the COVID 19 emergency.
• Driving the evolution of Digital Government to improve the digital experience of customers that transact business with the State.
• Supporting EdGEAR, a collaboration of leaders from DOE, K12 schools and GEAR, focused on generating efficiencies across public education.
• Implementing the GEAR training curriculum focused on LEAN Government, project management, program management, and the development of leadership skills.
• Growing the GEAR Field Team to support continuous improvement initiatives in more state agencies.
• Continuing to drive efficiencies through HR and IT centralization efforts.

“GEAR continues to expand its efforts to engage as many agencies as possible in initiatives that will deliver efficiencies and cost savings statewide,” said James Myran, Executive Director of GEAR, and Bryan Sullivan, Director of Management Efficiency at the Delaware Office of Management and Budget. “We are growing the GEAR Field Team by implementing advanced training to expand the number of state employees skilled and dedicated to leading process improvement initiatives.  The State’s business processes are becoming more efficient, generating savings of time and money, and improving the quality of interactions with citizens.”

###

Beginning in January 2021, the Delaware Division of Revenue (DOR) will require certain business tax returns, including most gross receipts tax, excise tax, and withholding tax forms, to be filed electronically. Payments for these taxes must also be made electronically. The list of affected business taxes has been included in DOR’s latest Technical Information Memorandum, available at de.gov/ModEFile.

DOR expects to launch a new taxpayer portal before the end of the year. The portal will provide an enhanced taxpayer experience allowing businesses and individuals alike to file and pay their taxes electronically, and provide access to review account financials, set up payment plans, apply for business licenses, and more. Please note that the due dates for filing and payments will remain unchanged, and penalties and interest on underpayments will be calculated accordingly

For information and updates regarding the Taxpayer Portal, please visit DOR’s modernization website. Any questions or concerns regarding how to file your returns or make electronic payments may be directed to DOR_PublicService@delaware.gov or DOR_BusinessTax@Delaware.gov. Answers to most general questions can be found in DOR’s Technical Information Memorandum on Mandatory Electric Filing: de.gov/ModEFile.

Effective January 2021

Division of Revenue Director Jennifer Hudson today announced that businesses subject to the Hazardous Substance Cleanup Act (HSCA) will see a decrease in last year’s rate from 1.0429% to 0.9067%. The new tax rate will go into effect on January 1, 2021, and will apply to taxable gross receipts from the sale of petroleum or petroleum products. The Division of Revenue will be updating the rate in their online system on or before the effective date of January 1, 2021.

Legislation was passed in 2018 calling for future rate increases to be based on a lookback period. The 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 substance release sites.

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

The State of Delaware Department of Finance recently began collaborating with The Precisionists (TPI), a Wilmington, Del.-based organization focused on employment for adults with disabilities. The pilot program, about to celebrate its first anniversary, uses the talents of a team of autistic adults from TPI’s workforce to tackle critical business needs within the Department of Finance’s Division of Revenue (DOR).

“When properly assessed and trained, people with autism are extremely high-performing employees working in critical and challenging jobs such as administrative business functions, including scanning documents and data entry, software testing, website QA, and data analytics,” said Ernie Dianastasis, CEO of The Precisionists. “When you consider that more than 80 percent of people with autism in the country are either unemployed or underemployed, we are making a true difference in engaging a significant, untapped labor force. We are thrilled to partner on this project with the State of Delaware Department of Finance, which continues to demonstrate leadership and commitment to the community.”

TPI identified, assessed, and trained its employees participating in the pilot program. Since January 2020, a TPI team consisting of several data analysts and a project lead have been fully integrated with the Delaware DOR team in Wilmington to support DOR’s Personal Income Tax Returns Processing and Business License Processing functions. For personal income tax returns, TPI team members receive, resolve, and process exceptions to tax return filings. For business licenses, TPI team members receive new applications and renewals for data entry into the system and processing.

“The Precisionists has created an innovative model focused on helping organizations excel by bringing the talents and strengths of people with diverse abilities into the workforce,” said Rick Geisenberger, Cabinet Secretary of the Department of Finance. “Our Department is thrilled to be part of this effort that aligns so well with our values under the leadership of Governor Carney, and strengthens our ability to continuously improve the services we provide to our customers and the State’s taxpayers.”

“The work being done by the TPI Associates has provided needed support and continuous improvement to the Division of Revenue. The resources they have provided have enabled us to better manage our day-to-day operations. The employees from The Precisionists are reliable contributors to our team,” said Jennifer Hudson, Director of the Division of Revenue.

Those participating in the pilot go through a comprehensive four-week training program. As part of the pilot program, the State of Delaware hopes to identify additional opportunities to expand this employment model to other parts of the business, further supporting The Precisionists’ goal of employing 10,000 people with diverse abilities in the United States by 2025.

###

About the State of Delaware Department of Finance and Division of Revenue
The Delaware Department of Finance’s mission is to promote Delaware’s fiscal health fairly and efficiently by forecasting, generating, collecting, and accounting for funds critical to essential government services.
As the primary revenue collector for the State, the mission of the Division of Revenue is to serve the State of Delaware by administering tax laws in a fair, secure, and efficient manner that creates the highest possible level of satisfaction for taxpayers and stakeholders and provides revenues that support quality public services.

To learn more, visit https://finance.delaware.gov/about-finance/ and https://revenue.delaware.gov.

About The Precisionists, Inc. (TPI)
The Precisionists, Inc. (TPI), a Benefits Corporation, is a national company focused on providing industry best practices for delivering administrative and technology services by building teams, which include individuals with disabilities. This approach enables The Precisionists to meet each customer’s specific needs and to deliver projects with the highest degree of productivity. The Precisionists is dedicated to creating jobs for individuals with disabilities in all the markets it serves. The Precisionists, Inc. is headquartered in Wilmington, DE. Learn more at www.theprecisionists.com. Connect with us on LinkedIn, Facebook, Twitter.

Contact:
Patricia Pfarrer
The Precisionists, Inc.
302-588-2353
Patti.Pfarrer@theprecisionists.com

Leslie A. Poland
Community Relations Coordinator
Delaware Department of Finance
302.577.8522
leslie.poland@delaware.gov