FOR IMMEDIATE RELEASE

Monday, Jan. 31, 2001 

FOR FURTHER INFORMATION

Becky Smalley
(302)577-8667
rsmalley@state.de.us

2001 KICK-OFF -- FILE YOUR DELAWARE RETURN ON-LINE

www.state.de.us/revenue

The filing deadline for Delaware tax returns is April 30, 2001.

Wilmington, Del. -- William M. Remington, Delaware Director of Revenue announced today that Delaware’s Internet filing program is off to a flying start.

Over 2000 taxpayers have filed their Delaware tax returns over the Internet since the program went live on Jan. 17, 2001 -- double the number who filed online this time last year.

By the end of last year’s filing season, over 17,000 taxpayers filed Delaware returns online and were pleased with the results of this fast and accurate tax filing method that generated tax refunds in an average 4 days.

What does filing electronically mean for taxpayers? According to Remington, “quick refunds and high assurance of accurate filing.” Remington encourages taxpayers to “take the simplest route to comply with their tax obligations. Use the Internet if you can, or file electronically if you use a preparer. The electronic mechanisms get you yourrefund fast--within a week, especially if you elect direct deposit. If you owe, you can use your credit card to pay your balance due if you file on the Internet.”

ELECTRONIC METHODS FOR FILING RETURNS

Ensure accurate returns and faster refunds

ON-LINE INTERNET FILING
www.state.de.us/revenue

File on-line from the Division of Revenue web site

Tax Year 2000 Resident, Nonresident, and EZ returns can be filed on-line.
Refunds in less than a week!!!

17,500 returns filed in 2000.
26,000 returns are anticipated to be filed in 2001, a 50% increase.
Avg. 4 day turn-around for refunds.

Certain restrictions apply, such as:

At least one, but no more than ten W-2 and/or 1099-R forms will be allowed.

No amended or fiscal year returns.

Benefits:

No software to download.

Takes 20 – 30 minutes to file a Delaware return over the Internet.

Faster refunds - Refunds received in an average of 4 days.

Direct Deposit is available. Direct Deposit is required for refunds over $500.

Pay by credit card. Master Card and Discover Card. VISA is not accepted.

E-mail notification of acceptance of return.

On-line math verification.

What do you need to get started.

Have your completed federal return handy.

A printer to print a copy of your completed return for your records.

To use direct deposit, you will need your checking or savings routing and account numbers

What can taxpayers do if they don’t have access to a computer with Internet capabilities?

Visit your Delaware public library and ask to use one of their computers.

Electronic Filing

Joint Delaware/Federal E-file returns using a paid preparer

65,000 returns filed in 2000

79,000 returns anticipated to be filed in 2001

Avg. 7 day turn-around for refunds (same turn-around time irrespective of peak processing backlogs.)

2-D Bar-coding for paper returns. This is the second year for this method.

Bar-coding used by participating preparers.

All information on return and schedules scanned instantly, requires no human capture of data.

33,000 returns filed in 2000.

50,000 anticipated to be filed in 2001

Avg. 10 day turn-around for refunds

Filing Due Date: Monday, April 30, 2001

Taxpayers are encouraged to file both their federal and Delaware tax forms early to ensure they receive their refunds as quickly as possible.

Tax Booklets & Post Cards

Approximately 154,500 Delaware tax booklets have been mailed to taxpayers; 127,500 resident booklets and 27,000 nonresident booklets. In addition, approximately 253,000 post cards were mailed to taxpayers who filed electronic returns last year or had their return prepared by a preparer.

Changes to Delaware State Tax Forms

The overall reduction in taxes for tax year 2000 will drop 13,400 taxpayers from the tax rolls.

Tax rates were reduced across the board for tax year 2000 by 9.5%.

The top rate is reduced from 6.4% to 5.95% for taxable income greater than $60,000.

Increase in standard deduction for married persons to equal the standard deduction for two single persons.

$4,000 to $6,500 for joint filers

$2,000 to $3,250 for married persons filing separate returns.

Increase in the retirement income exclusion for persons 60 and over from $5,000 to $12,500.

Capital Gains income now qualifies for the pension exclusion.

Increase in the personal tax credit from $100 to $110.

DE Form 2210. A new tax form that allows taxpayers to calculate and report an underpayment of estimated taxes.

Increase in requirement to pay estimated taxes from $100 to $400.

Direct Deposit that has been available for all electronic filing methods is now available for all Delaware paper returns.

Diabetes Education was added to the list of “Special Funds.”

Personal Income Tax Returns Processed Last Year

307,000 Paper returns

65,000 Electronically filed returns

33,000 2-D bar-coded returns

17,000 On-line returns

422,000 Total

REFUNDS:Nearly 300,000 refunds were issued in 2000 for more than $ 117 million averaging $390. Refund turn-around time averaged 12 days.

Where’s My Refund? Check our web site to find out.

Taxpayers eager to learn the status of their refund can inquire on the Division of Revenue’s web site, www.state.de.us/revenue. Enter your social security number and the exact amount of the refund you are expecting, then click “Inquire.”

TAX TIPS

1) File early. Using an electronic method to file your return will result in the fastest possible refund: On-line filing from the Division of Revenue’s web site www.state.de.us/revenue, electronic filing through a paid preparer, or filing a paper return through a participating paid preparer who uses bar codes.

If you want to receive your refund in the fastest amount of time, William M. Remington, Director, Delaware Division of Revenue urges you to file before April 1. “After April 1, tax refunds can take upwards of 4 to 6 weeks to process, assuming no errors. If there are errors on your return it will take even longer.”

2) Complete your federal return first whether you are filing paper or electronic returns The federal return is always the starting point for your Delaware return; Delaware piggy-backs from the federal return.

3) Verify your social security number.

4) Double-check your math.Math verification is automatic with on-line and electronically filed returns. Many refunds are delayed due to math errors on paper filed returns.

5) Attach all reporting documents to paper returns:

W-2’s, 1099’s, 1099R’s.

Copies of federal schedules required to be filed with your federal return, such as Schedules A, B, D, etc.

A signed copy of other state’s income tax return(s) if you claim a credit for taxes paid to another state. (Form W-2 is not sufficient.)

Copies of Form A-1 for credit for taxes paid by an S Corporation.

6) Sign and date your paper return.

7) Avoid A Late File Penalty

If your final return has a balance due and it is filed after the due date, a late filing penalty will be assessed, unless and Application for Automatic Extension of Time to File a Delaware Individual Income Tax Return (DE Form 1027) was filed. Form 1027 is NOT required if the balance due on your 2000 return is zero or less and an extension has been filed with the IRS. Form 1027 is not an extension of time to pay your liability, if you owe. Late file penalty is 5% per month to a maximum 50% of the balance due.

If you have a balance due and can’t pay, Mr. Remington says,“file anyway.” He wants to assure taxpayers that it is critically important to file your return on time so as not to add unnecessary penalties and interest to the amount due. Mr. Remington adds, “After you file your return, call our office and a trained representative will work with you to design a payment plan to fit your financial situation.”

SEASONAL JOB OPPORTUNITIES AT THE DIVISON OF REVENUE

The Division of Revenue has a need currently for individuals to fill Scanner and Image Prepping positions. These positions will primarily work an evening shift and the pay range is: $7-9 per hour. Tax season positions will start approximately February 1 and end on or about May 31.

For information contact J. Platt, (302) 577-8954.

The Delaware Division of Revenue provides taxpayer assistance at the following locations:

(800) 292-7826 (in DE only)

The Division of Revenue's website www.state.de.us/revenue

On-Line Filing

File your DE Resident, Resident EZ, Nonresident return from our web site and get your refund in less than a week or pay by credit card.

For forms and other information E-mail the Division of Revenue

Forms: Forms@state.de.us

Personal Tax Help: Personaltax@state.de.us

Business Tax Help: Businesstax@state.de.us

Estimated coupons: Estimated@state.de.us