Reminder: Delaware Voluntary Compliance Campaign Letters to Be Sent Out August 15, 2025

As previously reported, Delaware’s Secretary of State will be sending out additional Voluntary Disclosure Agreement (VDA) Program invitations on August 15, 2025, to an unknown number of large companies that are incorporated in Delaware. In prior waves of letters, anywhere between 50 to more than 100 letters have been mailed.

According to the invitation letters, if a company receives one of these invitations and does not respond within 90 days (previously 60 days), the company will be referred to the Delaware Department of Finance for audit. In other words, if ignored, the “invitation” letters are a first step toward a potential audit enforcement.

Companies should be on the alert in mid to late August for the arrival of an invitation letter, sent by the state via certified mail and usually addressed to the CEO or CFO, to ensure proper and timely action is taken. These VDAs have a very defined process to follow and are reviewed by one of three third-party administrators. The process typically takes about two years to complete, sometimes more or less depending on a company’s facts and circumstances.

Many states cast a wide net to pursue participants for their voluntary disclosure programs. VDAs are a type of amnesty program in which companies can disclose previously unreported and currently due unclaimed property, usually in exchange for a waiver of interest and penalties. A number of these state programs are also administered by third parties, as disclosed in the outreach letters.

For instance, New York has been actively mailing invitations to their Voluntary Compliance Agreement (VCA) program in 2025. Also, as we noted in a prior alert, Indiana recently sent notices requesting that companies perform a self-directed review and report past due property by November 18, 2025.

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.