State revenue division announces reduced filing schedules for some small companies

190
Advertisement

division-of-revneuThe Delaware  Division of Revenue has announced the first of what will become annual adjustments that may ease filing burdens on some small businesses.

These adjustments are intended to recognize small businesses’ unique challenges by simplifying compliance and potentially reducing filing frequencies, a release stated.

The safe harbor provision for small businesses was enacted in 1984 to address the filing issue, 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.”

The  Division of Revenue will notify businesses and employers regarding their filing responsibilities for the upcoming year.

Advertisement

The Delaware Competes Act also mandates that thresholds are subject to an annual inflation adjustment.  That means the thresholds will not erode over time.

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.

The act, designed to modernize the corporate tax code,  had some critics on the left, such as State Rep. John Kowalko, who claimed the legislation mainly benefitted large companies.

Provisions of the code do reduce corporate tax revenues. The hope is that companies in the state will remain and even expand.

Indeed, DuPont spin-off Chemours, believed to be a driving force behind the quick passage of the legislation announced it will remain in the state. Also, the headquarters of two of the three companies that will be spun off after the Dow-DuPont merger will be based in the state.

Advertisement
Advertisement