Delaware Offers Tax Amnesty Program

The Delaware Division of Revenue is offering a State of Delaware Tax Amnesty Program this fall.

From September 1 to October 30, 2009, any individual or business taxpayer who pays their current outstanding State of Delaware tax liability administered by the Division of Revenue will have their interest and penalty fees waived, if registered for the amnesty program.

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.

Individuals or businesses with balances from tax periods before January 1, 2009, must 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 plan as taxpayers with existing liabilities, except the state will waive their tax, penalty and interest fees for all periods filed prior to January 1, 2004.

For more information, go to www.revenue.delaware.gov.