What CFOs Need to Know:
On or about April 10, 2026, Delaware’s Department of State is scheduled to mail a new round of Voluntary Disclosure Agreement (VDA) invitation letters to companies across the country. If your business receives one, you have a limited window to act before automatically being referred for an audit.
What Is a Delaware VDA Invitation Letter?
An official notice sent by the Delaware Secretary of State. It is a written invitation to companies incorporated or formed in the Delaware to participate in the State’s unclaimed property voluntary compliance program.
The Invitation Letter:
- Invites your company to enroll in the 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.
Why the Deadline Matters:
The difference between a VDA and an audit is significant:
The imposition of interest and penalty.
VDA Program
- Collaborative process.
- Lower cost of resolution.
- Avoids interest and penalties.
- Greater control over the review.
An Audit Referral
- Managed by third-party auditors on behalf of the State.
- Can last 5-10 years.
- More invasive, time-consuming, and costly than a VDA; and
What To Do if You Receive 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 90-day deadline.
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 is received. 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 are referred for an audit; and
- Establish policies and procedures to ensure long-term compliance.
👉 Don’t leave your company exposed. Contact Clarus Partners today to discuss your Delaware Invitation Letter and take the right steps for your company before the deadline expires.