MarketSphere recently received correspondence from the office of Delaware’s Secretary of State (SOS), regarding the latest round of VDA invitations mailed to companies in February 2020. As a consequence of the COVID 19 pandemic, the SOS is extending the regular 60-day response deadline. Invited companies will now have until July 18, 2020 to respond to the SOS. The correspondence also provides details regarding how best to communicate with the SOS during the current state of emergency.
The correspondence states:
HOLDERS: For any holder who received a February 2020 invitation from the Delaware Secretary of State to join the Voluntary Disclosure Agreement Program ("SOS VDA Program"), due to the current state of emergency declared by Governor John Carney, as well as many other declarations made across the country and the world, the Office of Unclaimed Property, Department of Finance, and the State Escheator recognize that many holders have not had full access to their mail or the proper time to route the invitation to the appropriate individual(s). As a result, holders who received an invitation to join the SOS VDA Program during February 2020 will be able to join the SOS VDA Program through July 18, 2020.The Office of Unclaimed Property ("OUP") has sent letters, dated June 18, 2020, advising any holder who received the February 2020 invitation but has not yet enrolled in the SOS VDA Program, that the OUP will not send Notices of Examination for another 30 days.
Holders who intend to enroll in the SOS VDA Program should do so by sending in a completed VDA-1 as soon as possible and during this additional 30-day period. Please contact the SOS VDA Program by email (email@example.com) to enroll or with any questions.
After July 18, 2020, the State Escheator will send a Notice of Examination to any holder, who received a February 2020 SOS VDA Program invitation, who has not enrolled in the SOS VDA Program. Per 12 Del. C. § 1173(e)(3), holders may not enter the SOS VDA Program after a Notice of Examination has been mailed by the State Escheator.
Key Takeaway Points
• DE SOS VDA invitations mailed in February 2020 granted a response extention.
• Response now required by July 18, 2020.
• Extension only applies to companies that received the VDA invitation in February 2020.
• Letter recipients may include CFO, General Counsel or others.
• It is important to inform all persons and departments of what action they should take if they have received a February 2020 invitation.
• If recipients do not respond to the invitation by the July 18, 2020 due date, they will be referred for audit.
The unclaimed property specialists at MarketSphere serve as partners and advocates with the experience necessary to navigate the complexities of escheat compliance issues. If your organization has received any notices or have unclaimed property questions, we encourage you to Contact Us to discuss options and determine the course of action that may need to be taken.
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