Delaware has been busy filling the mailboxes of companies recently with Voluntary Disclosure Agreement (VDA) program invitations. If you are a recipient of any letter from Delaware, pay particular attention to the letter content.
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. The VDA program allows a company to come into compliance by utilizing the Delaware VDA guidelines to conduct a self-audit of their books and records.
This is an excerpt which will help in identifying the Delaware VDA program invitation:
It is important to note that those companies that do not enroll in the program will be referred to the Delaware Department of Finance for examination. Once the audit notice is issued, the Department of State will have no legal ability to accept a Holder into their VDA Program. Holders that receive a notice letter will have 60 days from the mailing of the notice to enroll in the VDA program. The letters are typically addressed to C-suite individuals. If you are responsible for unclaimed property compliance within your organization, we recommend notifying either your head accounting or tax officer to be on the look-out for a potential letter from Delaware.
If you have received a Delaware VDA program invitation, time is of the essence.
If you are uncertain of the letter you have received from Delaware or any other reporting jurisdiction, engage with an unclaimed property professional such as MarketSphere. A professional advisor has the expertise and knowledge to help holders understand the purpose of the letter and recommend actions that need to be taken.
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