DE HB268

Establishes a Voluntary Tax Compliance Initiative running from September 1, 2009 through October 30, 2009, allowing taxpayers to voluntarily disclose and pay unpaid taxes from periods before January 1, 2009.

Waives penalties and interest for taxpayers who file voluntary returns or pay final tax assessments during the initiative period, or enter into payment plans completed by June 30, 2010.

Waives all taxes, penalties, and interest for non-filers who file voluntary returns for tax periods prior to January 1, 2004.

Covers 14 categories of eligible taxes including personal income, gift, estate, corporate income, occupational licenses, sales and use taxes, and lodging taxes administered by the Division of Revenue.

Removes the 50% cap on penalties for failure to timely file returns and the 75% cap on penalties for fraudulent returns, effective for tax returns filed after December 31, 2008.