Unclaimed property holders need to stay vigilant about checking the mail. The DE Secretary of State (SOS) has indicated its intent to send out the latest round of VDA invitations on or about May 28, 2021. VDA invitations are sent several times per year to companies that are identified by the state as “likely being out of compliance” with Delaware’s unclaimed property law.
Under Delaware law, the state cannot initiate an unclaimed property examination (audit) unless a company has first been notified in writing by the SOS that it may enter into the SOS VDA Program. Holders who do not enroll in the VDA Program within the 60-day notice period set forth in the letter will be referred to the Department of Finance for an unclaimed property audit.As VDA invitations may be addressed to senior corporate executives, they often do not reach the person or group responsible for unclaimed property compliance in time to meet the 60-day deadline to prevent an audit.
If your company is incorporated in Delaware or has significant operations in Delaware, we recommend that the individuals responsible for unclaimed property compliance be on the lookout and make inquiries regarding the receipt of letters from either the Delaware Secretary of State or the Delaware Department of Finance.
Any corporation that receives a VDA invitation, notice letter or any other type of communication from Delaware, or other states, is encouraged to contact MarketSphere to discuss the options that may be available and determine the best course of action to take.
*Content contained in this article is considered accurate as of the publish date.