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Department of Finance: Division of Revenue

DELAWARE VTCI TAX AMNESTY PROGRAM


Important Notice: The Delaware Division of Revenue (DOR) was authorized by House Bill 268 to administer a Voluntary Tax Compliance Initiative (VTCI) or tax amnesty from 9/1/2009 to 10/30/2009. In addition, there was a provision to “…enter into payment plans to pay such eligible taxes before June 30, 2010.”

Beginning Thursday, July 1st, 2010, all VTCI inquiries should be directed to the DOR Account Management department at (302) 577-8785. General Revenue Corporation (GRC), with whom the Division of Revenue had contracted to assist in administering the program, will no longer be available to accept calls or payments.

The Delaware Division of Revenue was authorized by House Bill 268 to administer a Voluntary Tax Compliance Initiative (VTCI) or tax amnesty from 9/1/2009 to 10/30/2009.

The following is an overview of this program:

What is VTCI?

VTCI is Delaware's tax amnesty program for individuals and businesses. For a limited time, those with outstanding tax liabilities administered by the Delaware Division of Revenue are invited to pay their past-due taxes or file past-due tax returns free of penalty, interest, and collection fees, and without fear of litigation.

This Program begins September 1, 2009 and runs through October 30, 2009.

Benefits:
  • By entering into the VTCI Program, taxpayers can avoid paying any interest, penalty or collection costs on the amount they currently owe the Delaware Division of Revenue.
  • Taxpayers can voluntarily manage their outstanding tax liabilities without fear of litigation.
  • The Delaware Division of Revenue will release any warrants on taxes that are fully paid.


To Qualify

To benefit from Delaware's VTCI Program, you must meet all of the following requirements:

  1. You must be an individual or business with an outstanding State of Delaware tax.

  2. You must currently have one of the following:
    • An outstanding obligation;
    • You have not filed a return; or
    • You have under-reported your tax liability.

  3. Your tax liability must be administered by the Delaware Division of Revenue

  4. Your tax liability must have occurred for tax period(s) ending before January 1, 2009.

  5. Your tax liability must have occurred for one of the following Delaware taxes:
    • Personal Income Tax
    • Corporate Income Tax
    • Withholding Tax
    • Gross Receipts Tax
    • Public Utilities tax
    • Realty Transfer tax
    • Lodging tax
    • Gift Tax
    • Estate Tax
    • Income tax on estates and trusts
    • Occupational license fees and tax
    • Contractor license fees and tax
    • Manufacturer license fees and tax
    • Retail and Wholesale Merchant license fees and tax
    • Use tax and gross receipts tax on leases of tangible personal property
    • Tobacco product license fees and tax
    The above taxes due from partners, shareholders or members of pass-through-entities filing a voluntary tax return are also eligible.


Outstanding Obligations

Individuals or businesses with balances from tax periods before January 1, 2009, must pay their tax liabilities in full or enter into an agreed upon payment plan in order to take advantage of the VTCI benefits.

To enter into a payment plan, a down payment has to be made by October 30, 2009, and an approved payment schedule must be established.

Payment plans must be satisfied by June 30, 2010 to receive the benefits of the VTCI. There will be no extensions.


Non-Filers and Under-Reporters

In addition to having penalty, interest and collection fees waived for tax periods ending before January 1, 2009, if non-filers and under-reporters come forward voluntarily and file their past-due Delaware returns or amend previously filed Delaware returns, the Delaware Division of Revenue will not assess taxes that are reported in past-due or amended Delaware returns for tax periods before January 1, 2004. (Please note that this is a correction of what was previously published here stating that “non-filers and under-reporters who come forward and file their past-due Delaware returns will also have their tax balances waived for all years filed prior to January 1, 2004.”)

Non-filers and under-reporters must file and pay their outstanding tax liabilities in full or enter into an agreed upon payment plan in order to take advantage of the VTCI benefits.

To enter into a payment plan, a down payment has to be made by October 30, 2009, and an approved payment schedule must be established.

Payment plans must be satisfied by June 30, 2010 to receive the benefits of the VTCI. There will be no extensions.


Special Considerations

If you elect to take advantage of the Delaware VTCI Program, you are required to give up all rights to protest any assessment or claims for refunds or credits on your past-due Delaware taxes.

The VTCI period ends October 30, 2009. Failure to act before that time will result in a missed opportunity to pay only the base tax to satisfy your Delaware tax obligations.

By enrolling in the VTCI Program, you agree to disclose all outstanding tax liabilities, including non-filed and/or under-reported liabilities. Failure to disclose any tax liabilities existing prior to January 1, 2009, will automatically disqualify you from the program when discovered, regardless of the year. Any abated penalties and/or interest will be reapplied.

At the conclusion of the VTCI Program any outstanding liabilities, including penalties and interest, will be aggressively pursued by the state.


Additional Information

Tax Amnesty House Bill 268

Frequently Asked Questions


Last Updated: Thursday, 01-Jul-2010 08:24:17 EDT
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