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 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.

David Gregor has been appointed the new Director of Revenue for the State of Delaware, effective Monday, January 9, 2017.  Mr. Gregor has been with the Department of Finance for more than 29 years, most recently serving as the Deputy Secretary of Finance – a position he’s held since August of 2010. He has been responsible for policy development, financial analysis, as well as public affairs and communications for the department; including, but not limited to, tax, debt and infrastructure investment policies, and the management of the annual revenue stream in excess of $2.8 billion.

Mr. Gregor’s significant contributions the Department of Finance include providing analytic and strategic support to the Secretary – including public review of the State’s revenue system covering portfolio risks and economic competitiveness, producing recommendations that formed the basis for legislation that contained the most significant corporate income tax amendments in decades. He was responsible for modernizing the State’s primary economic development tax credit program in order to provide larger and better targeted incentives – at zero cost to the State. He has led the Division of Revenue through a thorough review of personal income tax processing methods, and ultimately reduced refund processing times by 30%. He also facilitated the efforts of tax administrators, industry executives and elected officials in the amendment of gross receipts tax, which led to the reopening of a shuttered refinery and the restoration of 800 jobs.

Since August 2013, Mr. Gregor has simultaneously served as State Escheator, managing all aspects of Unclaimed Property – the state’s third largest revenue source, with a staff of more than 20 employees and on-site contractors responsible for the administration of a $500 million revenue source. He led the team in a fourfold increase in claims paid, and the annual return of $100 million in assets to the property owners. He championed the implementation of a state of the art unclaimed property system enhancing internal controls, processing efficiencies, operational reporting and web-based functionality for owners and holders. This has resulted in a fivefold increase in claims submissions, and allowed for online filing of annual holder reports.

He has led or participated in the preparation of the State’s General Fund revenue forecast, and functioned as a tax policy analyst. Mr. Gregor previously managed the Bureau of Business Tax Systems, overseeing a staff of 20 responsible for processing and reconciling business license, gross receipts and withholding tax payments. He established performance measures for the new withholding computer system and identified causes of processing delays and managed the elimination of a multi-year backlog resulting in over $1 million in assessments He has also served as Executive Assistance to the Secretary of Finance with responsibility for a $35 million budget covering three operating divisions and department-wide information technology capital plan, and contributed to the development of statewide financial policies, including legged payroll, collection and write-off practices, and proper use of surplus state funds.

“David has a deep commitment to delivering efficient and effective services to Delaware’s taxpayers,” said Finance Secretary Tom Cook. “With his experience in finance, and his outstanding management skills, I am confident he can guide the Division of Revenue to new and even higher standards.”

Division of Revenue Director Patrick T. Carter has announced that Delaware tax season will begin Monday, January 23, 2017. Citizens are encouraged to file their 2016 State of Delaware Personal Income Taxes online at www.delaware.gov. This year’s filing deadline is Monday, May 1, 2017.

During the last filing season, the State dealt with a surge of fraudulently filed personal income tax returns, and stopped over $9 million in fraudulent refunds from being issued. In order to better identify fraudulent returns, the Delaware Division of Revenue has created new methods of detecting and preventing fraudulent refunds. However, as a result, the first refunds will not be issued until after February 15, 2017.

This year, Delaware is also urging taxpayers to electronically file their returns. Online filing offers many advantages. 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 1st 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 2016 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, 2017 for any job worked during the 2016 calendar year. Those who haven’t received a W-2 by January 31st should contact their employer.