DOVER — Statewide, DE – Governor Jack Markell and Division of Revenue Director Patrick T. Carter announced today the launch of Delaware’s Voluntary Tax Compliance Initiative (VCTI). The VTCI is a one-time, tax amnesty program geared to help individuals and businesses file outstanding tax returns and pay off their outstanding State of Delaware tax liabilities.
“Despite these tough budget times, it’s critical we keep moving Delaware forward on issues like our schools, our economy and our progress cutting the cost of government,” Markell said. “The tax amnesty program will help bring in millions in the short term this year and get delinquent filers back on the same financial page going forward next year.”
From September 1st to October 30th, any individual or business taxpayer who registers to file any outstanding tax returns and/ or pay their current outstanding State of Delaware tax liability administered by the Division of Revenue will have their penalty and interest fees waived. All balances must then be paid in full by June 30, 2010.
“Delaware’s tax amnesty program is a great benefit to taxpayers and to the state, especially in this current economic climate,” says Carter. “By reducing someone’s tax liability to just the principle tax amount owed, outstanding balances are significantly reduced and easier to manage. Delaware expects a number of its accounts – some 10 to 20 years old – to be paid in full by October 30th.”
Individuals or businesses with balances from tax periods before January 1, 2009, can register for Delaware’s VTCI program. They must then pay their liabilities in full or enter into a payment plan. Full payment must be received before June 30, 2010, in order to have all penalty and interest fees waived.
Non-filers who file all past-due returns can enter into the same VTCI plan as taxpayers with existing liabilities, except for non-filers, in order to encourage to report all non-filed returns Delaware will waive the penalty, interest and tax balance for periods filed prior to January 1, 2004.
“Delaware is looking forward to an exciting outcome with the VTCI program,” says Carter. “This is the first time Delaware has offered such a program in which taxpayers can get such significant savings and at the same time more money will be added to the state coffers at such a critical time. We are anxious to see how many people take advantage of such a beneficial program.”