Ryan has received notification that Delaware sent between 100–300 outreach letters to companies last week, inviting them to join the Voluntary Disclosure Agreement (VDA) program. The majority of the recipients received similar invitation letters in 2013, 2014, and/or 2015, making these companies eligible for audit should they decide not to join the VDA program.
We strongly recommend that companies in receipt of these letters consider the advantages of entering into a Delaware VDA. Namely, companies can take advantage of a shortened look-back period (1996 in a VDA versus 1986 under audit) as well as completing a faster-paced self-review versus an audit that could take several years or longer and drain internal resources. Further, the Delaware VDA program allows companies to avoid costly penalties and interest, which potentially could be an issue under audit. Finally, it is likely that companies who do not join the VDA program will be referred to the Delaware Department of Finance for an audit.
We suggest that companies seek guidance from a consulting advocate and/or legal counsel with experience in unclaimed property VDAs and audits to weigh the facts and circumstances of each particular situation to determine if the Delaware VDA invitation is one you should accept.
TECHNICAL INFORMATION CONTACTS:
Mark A. Paolillo
Principal
Ryan
857.288.1976
mark.paolillo@ryan.com
Susan Han
Principal
Ryan
858.771.1495
susan.han@ryan.com