Delaware General Assembly

CHAPTER 131

FORMERLY

SENATE BILL NO. 182

Section 1. Amend § 513, Title 30 of the Delaware Code, by striking said section in its entirety and substituting in lieu thereof a new § 513 to read as follows:

Ҥ 513. General requirements concerning returns; records and statements.

(a) The Director may prescribe rules or regulations with respect to the keeping of records, and may prescribe the content and form of returns and statements and the filing of copies of federal returns and determinations. The Director may require any person, by regulation or notice served on such person, to make such returns, render such statements or keep such records as the Director may deem sufficient to show whether or not such person is liable under this Title or Title 4 for the payment of any tax or for the collection of any tax. The Director may permit the filing of returns by electronic means and permit or require the filing by magnetic media and, in either case, may specify the form and content of such filing.

(b) Notwithstanding any other provision of law, any return, declaration, statement, or other document submitted by means of a digital or electronic form stating that the submission is subject to the penalties of perjury shall be treated for all purposes (both civil and criminal, including penalties for perjury) in the same manner as though signed or subscribed.”.

Section 2. Amend § 1154(h), Title 30 of the Delaware Code, by striking the existing subsection (h) and substituting in lieu thereof a new subsection (h) to read as follows:

“(h) Information returns. – Any person: (1) required to withhold, account for, and pay over taxes under this Chapter for which federal information return form W-2 is required; (2) making any payment of salary, fee, commission or other compensation for services to any Delaware resident individual or to any individual non-resident for work done or services performed or rendered within Delaware for which federal information returns form 1099 MISC or successor form is required or (3) otherwise withholding Delaware taxes from payment of any wage, pension, distribution or other remuneration shall also file with the Division of Revenue information returns with respect to each such individual to whom such federal forms are required to be issued. If a person is required to make and return such information reports to the Internal Revenue Service on magnetic media under Internal Revenue Code Section 6011 and regulations thereunder or successor provision, then the information returns required to be made under this section shall, unless excepted by the Director, also be made on magnetic media. Returns required to be filed on magnet media under this section shall be filed with the Division of Revenue on or before March 1 of the year following the tax year to be reported. All other returns required to be filed under this section shall be filed with the Division of Revenue on or before the date on which such returns are required to be filed with the Internal Revenue Service.”.

Section 3. Amend § 534(f), Title 30 of the Delaware Code, by designating the text in existing subsection (f) as paragraph (1) of said subsection and adding to subsection (f) a new paragraph (2) to read as follows:

“(2) Any person required to file an information return pursuant to section 1154(h) who fails to file such return on or before the date prescribed for its filing or who fails to include all the information required to be shown on the return or includes incorrect information on the return or who fails to file in the required manner, shall, unless it is shown that such failure is due to reasonable cause and not due to wilful neglect, pay a penalty in an amount equal to one-half the amount specified in the Internal Revenue Code, as it may be amended from time to time, for such failure.”.

Section 4. Amend § 535(j), Title 30 of the Delaware Code, by adding the following sentence at the end of said subsection: “For purposes of this subsection any other method of payment, including but not limited to, payment by electronic funds transfer, payment by means of the automated clearing house, payment by credit card, debit card, or charge card shall be considered a payment by check or money order.”.

Section 5. If any provision of this Act or its application to any person, period of time, or circumstance is held invalid, the invalidity does not affect other provisions or applications of this Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

Section 6. This Act shall be effective for returns required to be filed after its enactment into law.