2020 Delaware Code
Title 30 - State Taxes
Chapter 5. Procedure, Administration and Enforcement
Subchapter III. Procedure and Administration
§ 546 Voluntary Tax Compliance Initiative.
(a) Voluntary Tax Compliance Initiative. — For the purpose of encouraging the voluntary disclosure and payment of taxes owed to this State, the Division of Revenue is hereby authorized and directed to establish a Voluntary Tax Compliance Initiative (the “Initiative”) for eligible taxes, as provided in this section.
(b) Waiver of penalty and interest; limitation. — If, during the term of the Initiative, a taxpayer
(1) Files a voluntary tax return or returns and pays the eligible taxes reported due, or enters an installment arrangement acceptable to the Director for payment of the eligible taxes reported due, or
(2) Pays eligible taxes the assessment of which is final before the date of commencement of the Initiative, then:
a. The Director shall waive penalty, interest and other collection fees that may otherwise be assessed on such eligible taxes, and
b. The Director shall not assess any tax, interest or penalty for any voluntary tax return reporting eligible taxes under the Initiative for tax periods before January 1, 2004.
(c) Limitation on Initiative. — The Initiative shall be limited to taxpayers who, between September 1, 2009, and October 30, 2009:
(1) File voluntary tax returns and
a. Pay eligible taxes reported on those returns or
b. Enter into payment plans to pay eligible taxes reported on those returns before June 30, 2010, or
(2) Pay eligible taxes the assessment of which is final before September 1, 2009, or enter into payment plans to pay such eligible taxes before June 30, 2010.
(d) Definitions. — As used in this section,
(1) “Eligible taxes” shall include the following taxes (and additions to tax) that were due for any tax period ending before January 1, 2009, and unpaid as of September 1, 2009:
a. Personal income tax levied pursuant to Chapter 11 of this title;
b. Gift tax levied pursuant to Chapter 14 of this title [repealed];
c. Estate tax levied pursuant to Chapter 15 of this title;
d. Income tax on estates and trusts levied pursuant to Chapter 16 of this title;
e. Corporation income tax levied pursuant to Chapter 19 of this title;
f. Occupational license fees and tax levied pursuant to Chapter 23 of this title;
g. Contractors' license fees and tax levied pursuant to Chapter 25 of this title;
h. Manufacturers' license fees and tax levied pursuant to Chapter 27 of this title;
i. Retail and wholesale merchants' license fees and tax levied pursuant to Chapter 29 of this title;
j. Use tax and gross receipts tax on leases of tangible personal property levied pursuant to Chapter 43 of this title;
k. Tobacco product license fees and tax levied pursuant to Chapter 53 of this title;
l. Realty transfer tax levied pursuant to Chapter 54 of this title;
m. Public utilities tax levied pursuant to Chapter 55 of this title; and
n. Lodging tax levied pursuant to Chapter 61 of this title.
o. The above-listed taxes due from partners, shareholders or members of pass-through-entities filing a voluntary tax return.
(2) “Initiative” means the Voluntary Tax Compliance Initiative enacted by this section.
(3) “Pay”, “paid”, or “payment of the eligible taxes” shall include an installment payment arrangement for payment of eligible taxes acceptable to the Director of Revenue without default by the taxpayer.
(4) “Voluntary tax return” means a complete and accurate tax return that is required to have been filed pursuant to this title but where:
a. The taxpayer did not file a timely return for the same tax type and tax period; and
b. The Division of Revenue has not notified taxpayer that it cannot verify that the taxpayer filed a return for the same tax type and tax period.
A voluntary tax return filed pursuant to the Initiative shall constitute an admission by the taxpayer that it was not filed on or before its due date and that there exists no reasonable cause therefore.
(e) Taxpayer default. — If any eligible tax, or any part thereof, is not paid during the term of the Initiative or if any installment arrangement for payment of eligible taxes acceptable to the Director of Revenue is not executed during the term of the Initiative and paid on or before June 30, 2010, penalty and interest equal to the amount of delinquent penalty and interest imposed by the applicable sections of this title for nonpayment of the tax shall be added thereto and deemed payable without protest.
(f) The Division of Revenue is authorized, notwithstanding the provisions of any other Delaware statute, to
(1) Expend for the purpose of funding the agreements described in the next paragraph, the necessary available funds from the special fund established under the Finance section of the Epilogue of 77 Del. Laws, c. 84, §§ 141 and 142, which constitutes the Fiscal Year 2010 Operating Budget, for purposes of contracting and/or employing personnel for the collection of delinquent state taxes and other debts that the Division of Revenue has undertaken to collect; and
(2) Enter into agreements with third parties to publicly advertise, assist in the collection of eligible taxes, and administer the Voluntary Tax Compliance Initiative under which contingency and other fees may be payable to such third parties.
(g) Ten percent of the funds collected, after expenditures attributable to subsection (f) of this section, shall be transferred into the fund defined in paragraph (f)(1) of this section to provide for personnel costs for the audit of businesses or persons taxable under the supervision of the Division.
(h) Regulations. — (1) The General Assembly finds that there is a need to implement the Initiative on September 1, 2009, and recognizes that this timetable does not allow the Director to observe the normal rule-making procedures in the Administrative Procedures Act, 29 Del. C. §§ 10101 et seq. Accordingly, the General Assembly has determined to waive the rule-making procedures in the Administrative Procedures Act with respect to regulations governing the Initiative and to allow publication of regulations governing the Initiative in final form in the initial instance in the Register of Regulations.
(2) The Director is authorized:
a. To make all regulations consistent with the provisions of 77 Del. Laws, c. 79, that the Director deems necessary to implement the provisions of 77 Del. Laws, c. 79, without complying with the provisions of subchapter II of Chapter 101 of Title 29, but subject to § 10141 of Title 29 governing judicial review of such regulations and,
b. To publish in the Register of Regulations all regulations made in accordance with paragraph (h)(2)a. of this section as final official regulations without having first published such regulations in proposed form, notwithstanding the provisions of subchapter III of Chapter 11 of Title 29 or any rules or regulations promulgated pursuant to that subchapter.
