Delaware VDA Letters – What CFOs Need to Know Before November 13, 2025
On August 15, 2025, the Delaware Department of State mailed a new round of Voluntary Disclosure Agreement (VDA) invitation letters to companies across the country. If your business received one, you have a limited window to act before being referred for audit.
What Is a Delaware VDA Invitation Letter?
Here’s what you need to know, and why taking the right steps now can save your company time, money, and unnecessary risk.
What Does a Delaware VDA Invitation Letter Look Like?
While company details vary, Delaware VDA invitation letters generally follow a consistent format:
- Letterhead: Delaware Department of State
- Subject line: RE: Secretary of State’s Abandoned or Unclaimed Property Voluntary Disclosure Agreement Program
- Addressee: Sent to a senior officer such as the CFO or General Counsel, with a copy often sent to the company’s registered agent
- Body: States the company may be out of compliance with unclaimed property law; formally invites enrollment in the VDA program; highlights benefits of voluntary resolution
- Deadline: Requires enrollment within 90 days of the letter date
- Audit Warning: Explains that failure to enroll will result in referral to the Department of Finance for audit (usually handled by third-party auditors)
A Delaware VDA invitation letter is an official notice sent by the Secretary of State. It signals that your company has been identified as potentially out of compliance with Delaware’s unclaimed property law (12 Del. C. ch. 11).
The letter:
- Invites your company to enroll in Delaware’s Voluntary Disclosure Agreement program.
- Highlights the benefits of resolving past-due unclaimed property obligations voluntarily.
- Sets a strict enrollment deadline (90 days from the letter date).
- Warns that failure to enroll will result in referral to the Delaware Department of Finance for audit.
For the August 15, 2025 mailing, the enrollment deadline is November 13, 2025.
Why the Deadline Matters
The difference between a VDA and an audit is significant:
- VDA Program
- Collaborative process.
- Lower cost of resolution.
- Avoids interest and penalties.
- Greater control over the review.
- Audit Referral
- Managed by third-party auditors on behalf of the state.
- Can last years.
- More invasive, time-consuming, and costly.
- Increased likelihood of penalties and higher assessments.
What To Do if You Received a Delaware VDA Letter
- Do not ignore it. This is not a courtesy letter — it’s a formal notice.
- Review your records. Evaluate your company’s unclaimed property history, including subsidiaries and affiliated entities incorporated in Delaware.
- Determine your response strategy. Decide whether to enroll in the VDA program or face audit (most companies choose the VDA).
- Submit Form VDA-1 by the deadline. For the August 15, 2025 batch, that means enrolling no later than November 13, 2025.
- Engage experienced help. The process involves strict deadlines and complex reporting requirements. Working with a specialist can reduce risk and streamline compliance.
How Clarus Partners Can Help
At Clarus Partners, we understand the complexities of unclaimed property, and the pressure executives face when a Delaware VDA letter arrives. Our team, led by Sonia Walwyn, CPA and attorney with over 30 years of UP experience, can:
- Guide you through the Delaware VDA enrollment process.
- Conduct exposure analysis and risk assessments.
- Defend against audits if you’ve already been referred.
- Establish policies and procedures to ensure long-term compliance.
Final Thoughts
If your company received a Delaware VDA invitation dated August 15, 2025, you have until November 13, 2025 to act. Waiting too long or doing nothing all but guarantees an audit.
👉 Don’t leave your company exposed. Contact Clarus Partners today to discuss your situation and take the right steps before the deadline.