Keane's Unclaimed Property Blog

Recent Uptick in Delaware Unclaimed Property Audit Notices

Throughout the past few weeks, there has been an uptick in the number of Delaware unclaimed property audit notices sent by the Department of Finance State Escheator to companies believed to be out of compliance with Delaware unclaimed property laws and regulations, who they consider to be audit eligible.

These notices are different from the letters or invitations currently being sent to other potentially noncompliant businesses, which offer one last chance to enroll in the Voluntary Disclosure Agreement (VDA) program operated by the Delaware Secretary of State’s Office.

Holders that previously received a Voluntary Disclosure Agreement invitation, in some cases as early as 2015, and failed to elect to participate, are still considered eligible to be included in this wave of audit notices.

While Delaware unclaimed property law states that no holder may be audited without first receiving an offer to enroll in the VDA program, it does not require the State to send a second offer. Holders that did not elect to enroll, or have taken no action since receiving a previous VDA offer are likely to receive an audit notice soon.

Delaware Unclaimed Property Audit and Voluntary Disclosure Agreement Program Update

Businesses that receive the latest wave of VDA notices have 60 days from the date of the notification to enroll in the VDA program. Failure to act on the invitation allows the Secretary of State to refer your company to the State Escheator for audit consideration.

Separately, the Delaware Department of Finance approved its Unclaimed Property Reporting and Examinations Regulations. Within the new approved regulations, certain provisions will give holders whose audit began prior to July 22, 2015 the opportunity to convert their audit to either a VDA or an expedited audit by December 11, 2017.

If you are unsure if your company has previously received a VDA notice, has recently received an audit or examination notice, or would like to discuss what your organization’s best course of action is, please contact a member of Keane’s Consulting & Advisory Services Team.

As an experienced holder advocate, Keane has helped hundreds of businesses through the Delaware VDA program and unclaimed property audit process, ensuring all requirements are fulfilled in an efficient and cost-effective manner.

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Compliance, Unclaimed Property Audit

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