Delaware legislation increases the threshold for the payment of estimated personal income tax liability. The legislation also:
– eliminates the requirement that the Division of Revenue mail blank income tax forms to all taxpayers;
– authorizes tax information sharing agreements with state agencies; and
– clarifies that a judgment lien, instead of the underlying judgment, continues for up to 20 years.
Estimated Tax Threshold
Resident and nonresident individuals must pay estimated income tax if expected tax liability for the tax year exceeds $800. Delaware previously set the threshold at $400. The change applies to tax years beginning after 2017.
The Division of Revenue must provide blank income tax return forms that taxpayers can download from an internet site by January 15 each year. The new requirement applies to return forms for:
– partnerships; and
– other pass-through entities.
The division must mail blank return forms to individuals who filed a return in the previous tax, unless:
– a paid tax preparer prepared the taxpayer’s return;
– the taxpayer prepared the return with a 2-D bar code or other electronic media; or
– the taxpayer filed the return using a method other than submitting a paper return.
Information Sharing Agreements
The Division of Revenue may enter into tax information sharing agreements with the:
– Department of Labor;
– Office of the State Bank Commissioner;
– Department of Natural Resources and Environmental Control;
– Division of Motor Vehicles;
– Division of Alcohol and Tobacco Enforcement; or
– Alcoholic Beverage Control Commission.
A tax sharing agreement allows the agency to inspect most tax returns filed with the Division of Revenue.
Ch. 292 (H.B. 392), Laws 2018, effective July 1, 2018