Delaware has the most robust unclaimed property enforcement program in the country, often targeting companies incorporated in that state for audits that typically last multiple years and become a drain on internal resources. As part of a periodic and ongoing effort, it is our understanding that Delaware sent out Voluntary Disclosure Agreement (VDA) Program invitations on February 20, 2020 to more than 100 large companies that are incorporated in Delaware.
The VDA Program is a type of unclaimed property amnesty program in which companies can disclose previously unreported unclaimed property in exchange for a waiver of interest and penalties. However, according to the invitation letters, if a company receives one of these invitations and does not respond within 60 days, the company will be referred to the Delaware Department of Finance for audit. In other words, the invitation letters are, in reality, a first step towards a potential audit notice.
Because the 60-day window for responding to Delaware’s VDA invitation will close in April, time is of the essence for companies to conduct an internal review to find out whether an invitation letter, sent by the State via certified mail, was received by the CEO, CFO, or the company’s mailroom. These letters are typically sent to executive-level personnel because their names are publicly available.
If your company receives a Delaware VDA invitation letter, please contact one of Ryan’s unclaimed property professionals to discuss appropriate options for responding to the invitation.
TECHNICAL INFORMATION CONTACTS:
Mark A. Paolillo
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