Check Your Mail – You May Have Received an Invitation to Delaware’s VDA Program

Delaware recently indicated on its website that the latest round of invitations to the Secretary of State’s voluntary disclosure agreement program (“VDA program”) would be mailed to companies (“holders”) on or around August 11, 2025.  Holders have 90 days to enroll in the VDA program, or they will be referred to the Delaware Department of Finance for an unclaimed property audit.

Invitation Mailing Timeframes

The invitations are typically mailed twice a year, with the last mailing date on or around April 11th, 2025.  The overall goal of the program is to increase compliance and reduce the number of audits.

To Whom Are the Invitations Sent?

Letters are often mailed to a senior ranking officer, such as the chief financial officer, so holders should be advising the executive team to be on the lookout for such letters as they are time sensitive.

Invitations and Self-Enrollment in the VDA Program

Responding to an invitation is not the only way to enter the VDA program.  Holders may also self-enroll, for example, if there is a gap in the holder’s reporting history, if there is a new property type that should have been reported or if the holder recently acquired unclaimed property liability via a merger or acquisition.

It is also worth noting that Delaware cannot initiate an unclaimed property audit without first inviting the holder to enter the VDA program.

Benefits of Enrollment in the VDA Program

There are distinct benefits of the VDA program when compared to an audit.  The process is more collaborative, with the holder performing a self-review of the entities and property types it includes in scope.  VDAs also place less stress on the holder’s resources.  Finally, and most importantly, penalties and interest on past-due property are waived and the holder will not be audited for the years and property types included.

Other Outreach Sent by Delaware

Verified Reports

Delaware also uses other forms of outreach to encourage compliance and enforce their unclaimed property laws.  The Department of Finance mails out letters requesting a verified report, which is often conducted by a third-party auditor.  These notices will request a copy of the holder’s report for the most recent filing year, the legal entities included in the report and the holder’s policies and procedures.  Holders that did not file a report (there is no requirement to file a negative report in Delaware) may also receive a letter.  These letters have a 30-day response period and require documentation to be provided within 180 days, with a completion time of one year.  Holders failing to respond can be referred to the VDA program, or a compliance review or even an audit.

Compliance Reviews

Compliance reviews are conducted by the Department of Finance staff, and they will request a list of all entities included in the report, a list of supporting documentation related to the report, and the holder’s entity information and accounting policies.  There is a 30-day response period, and the review should be completed within one year.

Holders can voluntarily enroll in the VDA program even if they are in the process of completing a verified report or compliance review.

If you have recently received any type of outreach from Delaware, please contact us so that we may assist you in considering available options and determining your next steps.

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