The Delaware Secretary of State (SOS) has indicated its intent to mail the latest round of VDA invitations on or about July 22, 2022. 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 the SOS VDA Program. Holders who do not enroll in the VDA Program within the 90-day notice period set forth in the letter will be referred to the Department of Finance for an unclaimed property audit.
As of the writing of this post, pending bill DE SB 281 would modify current law to allow the state to initiate a compliance review for any reason (current law requires the state to believe that the holder may have filed an inaccurate, incomplete, or false report to authorize such a review), and would deprive holders of the opportunity to participate in the Delaware VDA program. Further, if the holder does not complete the compliance review within the short 1-year timeframe, the state could convert the compliance review into a formal audit.
Considering the various efforts used by the state to enforce their unclaimed property law, it is important for holders to be on the lookout for VDA invitations, notice letters, or any other form of communication from the state, particularly if your company is incorporated in Delaware or has significant operations in Delaware. We encourage you to contact MarketSphere to discuss your available options and determine the best course of action to take.
*Content contained in this article is considered accurate as of the publish date.
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