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2/8/22 9:33 AM

Unclaimed Property Outreach from Delaware & the District of Columbia

by Heather Gabell

single letterThe next scheduled rounds of invitations to enroll in the Delaware Secretary of State’s (SOS) voluntary disclosure program are expected to be sent on February 18, 2022, and then again on May 20, 2022.

 Under Delaware law, the SOS must first notify the holder in writing that it may enter the VDA program prior to initiating an unclaimed property examination (audit). Holders who do not enroll within the 90-day notice period will be referred to the Department of Finance for audit.

If your company is incorporated in Delaware or has significant operations in Delaware, be on the lookout for these letters, or any letters from either the Secretary of State or the Department of Finance. We have also confirmed with the District of Columbia that communications are being mailed to holders regarding:

• Internal self-managed audits;

• Third party audits;

• Self-review audits by third parties; and

• Internal holder compliance/delinquent letters. 

These outreach letters are similar to those sent by other jurisdictions, including Illinois, Massachusetts, Michigan, Minnesota, and Utah. Holders that are viewed by the state as noncompliant with its unclaimed property law (for example, failed to file an unclaimed property report, or filed an incomplete report) may receive such a letter. In many cases, holders must respond quickly to these letters (typically within 30 or 45 days). In some cases, a third-party audit firm is contracted to assist the state with the review process.

We expect to see continued enforcement of the unclaimed property laws by the states in 2022, in the form of VDA invitations, self-reviews, and/or audits.   We recommend that holders take a proactive stance to unclaimed property compliance, beginning with a review of their unclaimed property processes. If your company has received an invitation or letter or need assistance in performing a risk assessment or with your unclaimed property policies and procedures, contact MarketSphere to discuss your options and the best path to address your needs.

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

Topics: Delaware, Compliance, Best Practices, Voluntary Disclosure Agreements