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8/23/22 8:32 AM

Delaware Actively Mailing Notices Requesting Verified Reports

by Heather Gabell

single letterWe recently discussed in a previous blog post that DE SB 281, enacted and made effective on June 30, 2022, among other things, expands the state’s enforcement powers by allowing the State Escheator to request a verified report or compliance review from a holder for any reason. Prior law required the State Escheator to have “reason to believe” that the holder failed to file a report, or who the State Escheator believed had filed an inaccurate, incomplete, or false report.

Holders are presently receiving notices requesting verified reports for the prior report year, even if they did not have any unclaimed property to report for that year. Under Delaware law, a negative report, or “zero report” is not required.These notices require the holder to submit the following information to the Delaware Department of Finance, Office of Unclaimed Property, within 30 days of receipt of the notice:

1. A Verified Report for the report year in question, including “Attachment A”, which requires the holder to provide a list of legal entities (e.g., subsidiaries and related entities) that were included in the Verified Report; and

2. A response as to whether the holder has written unclaimed policies and procedures in place, and if so, to provide a copy of such policies and procedures.

If a holder fails to respond to these verified report requests or to complete the verified report, or compliance review, the new provisions of Delaware law permit the state to issue a Notice of Examination to the holder, without providing the holder with the opportunity to participate in the Secretary of State’s Voluntary Disclosure Program (VDA program).

Holders should be on the lookout for such communications, as Delaware is actively reaching out to holders, even those who are in compliance with the unclaimed property laws, and time is of the essence.

If you or your company has received a notice for a verified report or a compliance review, or any other type of communication from Delaware, we recommend that you Contact Us. MarketSphere 's subject matter experts can assist you in determining your next steps and the best course of action. We are also able to provide support in putting policies and procedures in place or reviewing existing policies and procedures to ensure you are up to date with your unclaimed property compliance and reporting obligations.

*Content contained in this article is considered accurate as of the publish date.

 

Topics: Delaware, Audit, Voluntary Disclosure Agreements