Delaware has the most robust unclaimed property enforcement program in the country, often targeting companies incorporated in that state for audits that typically last multiple years and become a drain on internal resources. As part of a periodic and ongoing effort, Delaware has, in recent weeks, begun to send out Voluntary Disclosure Agreement (VDA) Program invitations to a sizeable number of large companies that are incorporated in Delaware. The VDA Program is a type of unclaimed property amnesty program in which companies can disclose previously unreported unclaimed property in exchange for a waiver of interest and penalties. However, according to the invitation letters, if a company receives one of these invitations and does not respond within 60 days, the company will be referred to the Delaware Department of Finance for audit. In other words, the invitation letters are, in reality, a first step towards a potential audit notice.
The invitation letters are typically sent to high-level executives, such as the CEO or CFO, and tend to not reach the appropriate level recipient in time for the company to make an informed decision about whether or not to enter into the Delaware VDA. For this reason, Ryan is recommending to all its clients that their mail rooms be put on alert for these Delaware VDA invitation letters that are being sent via certified mail by the Delaware Department of State. If your company receives a Delaware VDA invitation letter, please contact one of Ryan’s unclaimed property professionals to discuss appropriate options for responding to the invitation.
TECHNICAL INFORMATION CONTACTS:
Mark A. Paolillo
Principal
Ryan
857.288.1976
mark.paolillo@ryan.com
Susan Han
Principal
Ryan
442.244.2447
susan.han@ryan.com