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.

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.

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

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

Division of Revenue Director Patrick T. Carter has announced that Delaware tax season will begin Tuesday, January 19, 2016. Citizens are encouraged to file their 2015 State of Delaware Personal Income Taxes online at www.delaware.gov. This year’s filing deadline is Monday, May 2, 2016. Online filing offers many advantages, and Delaware urges taxpayers to electronically file their returns. 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 2nd 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 2015 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, 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.

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