The two-month long partnership between the Delaware Division of Revenue and the General Revenue Corporation, a subsidiary of Sallie Mae Corporation, is expected to clear more than 14,000 delinquent accounts. When the program was authorized this summer, estimates called for $10 million to be collected.
“During these challenging times, it is certainly good news that Delaware will have additional funds to help government meet its core commitments, like teachers in the classroom, police on the street and care for our most vulnerable citizens,” Markell said.
Sallie Mae Senior Executive Vice President Jack Hewes, who introduced the Governor at a press conference at Sallie Mae’s Newark, Del.-based offices earlier today, said he was pleased that Delaware chose to partner with a business in its own community. As a result, Sallie Mae hired and trained 29 local employees for the program.
“Delaware’s amnesty has not only collected a great deal of money for the state, it’s also provided jobs for Delaware residents,” said Hewes. “Sallie Mae is pleased to bring the high-quality workforce, the innovation and the technology of the private sector to work in partnership with the State to create synergies that far exceed the original expectations.”
The Delaware amnesty program, officially termed the 2009 Voluntary Tax Compliance Initiative (VCTI), ran from September 1 through October 30, 2009. During this time, any individual or business taxpayer who registered to pay their current outstanding State of Delaware tax liability before June 30, 2010, was freed of their penalty and interest fees. Delaware netted more than $15 million in cash payments through October 30, 2009, with an estimated $7 million registered in payment plans to be paid before June 30, 2010.
“Thanks to the partnership between the Department of Finance and Sallie Mae, Delaware’s amnesty program brought in much more than we anticipated,” said Acting Secretary of Finance Tom Cook. “Now that the amnesty is finished, however, the State is going to vigorously work to collect unpaid taxes from those who did not come forward.”