Holders will have 60 days from mail date to enroll in the SOS VDA program or risk referral to State Escheator for examination.
Keane has received notification from the Delaware Secretary of State’s office that it will be mailing notices to holders whom it believes to be non-compliant with Delaware escheat law. Below is the full text of the notification.
As an unclaimed property professional who has represented Holders in the Delaware unclaimed property audit and/or SOS VDA Program, you should be aware of an important update about the Delaware SOS VDA Program.
In two weeks, my office will begin mailing notices to Holders who have been identified as likely being out of compliance with Delaware law as it relates to reporting dormant abandoned or unclaimed property. Holders that do not enroll in the SOS VDA Program within 60 days of the mailing of this notice will be referred to the State Escheator for examination. If an audit notice is issued, the Department of State will have no legal ability to accept a Holder into the SOS VDA Program.
The SOS VDA Program was put in place to respond to concerns about Delaware’s ongoing audit program, and to encourage more companies to come into compliance with their legal responsibilities as they relate to abandoned property. Through recent changes in the law, Delaware is providing every company with an opportunity to voluntarily comply prior to being issued an examination notice. We urge you, your clients and potential clients to take advantage of this opportunity to enroll in the SOS VDA Program.
This information may be shared as you deem appropriate. Any questions can be directed to Alison Iavarone at firstname.lastname@example.org or at 302-577-8959.
Thank you for your attention to this matter.
Jeffrey W. Bullock
Secretary of State
As a reminder, holders that have enrolled in the VDA program are not eligible for audit by the State Escheator. However as stated above, if a holder receives an audit notice, they are precluded from enrolling the SOS VDA Program and the Department of State is unable to accept their enrollment.
If you believe your organization is at risk of receiving a Delaware unclaimed property audit notice and would like to pursue the Voluntary Disclosure Agreement program, please contact a member of Keane’s Consulting & Advisory Services Team. Keane has extensive experience assisting organizations as a Holder Advocate, ensuring that all requirements of the Delaware VDA program are completed in an efficient and compliant manner.