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.

With tax season well underway, Division of Revenue officials are noting an uptick in Delaware returns reporting overstated Delaware income tax withholding. The appropriate amount to report is limited to the total in Box 17 of the W-2 form provided by your employer (or the sum of those amounts if you have multiple employers), plus any state income tax withholding reported on a Form 1099-R.

Division of Revenue Director, Jennifer R. Hudson, Esq. noted “We are reviewing all returns that have overstated withholding, and they may be treated as fraudulent returns.”

Overstated withholding can be a sign of fraud, and returns with higher amounts than usual are being treated as suspicious. That means these returns will be pulled for review, extending the length of time required to process your return – and potentially delaying your refund.

If you have questions about the appropriate amounts to report, please contact the Division of Revenue Public Service area at 302-577-8200, or 1-800-292-7826.