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1/31/19 10:02 AM

Delaware Sends Out New Round of Unclaimed Property Audit Notices

by Clive Cohen

delawareMarketSphere Unclaimed Property Specialists has learned that the State of Delaware began sending out a significant number of unclaimed property audit notices in early January 2019.

Pursuant to 12 Del. C. § 1172(a), the State of Delaware cannot initiate a new abandoned or unclaimed property examination unless the company has first been notified in writing by the Secretary of State that it may enter the Delaware VDA program. 

As we advised in our December blog entitled “Delaware Unclaimed Property Notice Letter”, Delaware had been busy filling companies’ mailboxes with Voluntary Disclosure Agreement (“VDA”) program invitations. Companies had 60 days to respond to the invitation or be referred to the Department of Finance for audit.  Following up on these invitations, the State has now begun mailing unclaimed property audit notices to companies that did not respond timely to these invitations. 

It is anticipated that both the Delaware Department of State and the Department of Finance will be extremely focused on unclaimed property enforcement in 2019. As part of this focus, MarketSphere understands that the State will likely be mailing hundreds of voluntary disclosure invitations in each quarter of 2019.

Any company that receives a notice from either the Delaware Department of State or the Delaware Department of Finance is strongly encouraged to contact MarketSphere at 844.357.1099 or Contact Us to set up a no cost consultation and learn about options. The receipt of either a VDA invitation or an audit notice will likely have a significant impact on your company. Our team is highly experienced and partner with holders to guide them through VDAs, unclaimed property audits and all escheat needs to create a custom plan that minimize time and costs while mitigating risks appropriately. 

Topics: Delaware, Reporting, Audit, Voluntary Disclosure Agreements