New Round of Delaware VDA Notices Mailed
On July 14, 2023, a new round of letters was mailed by Delaware’s Secretary of State (“Delaware” or the “State”), inviting the targeted companies to participate in the State’s Unclaimed Property Voluntary Disclosure Agreement Program (“VDA Program”).
Did your company receive one of the new Delaware invitations to participate in the State’s VDA Program? Check-in with the C-Suite as these invitations are usually addressed to the CFO, CEO or the company’s Delaware registered agent. The invitations provide an enrollment period of 90-days, and expressly states, that failure to timely enroll (within 90-days from the date of the letters) will automatically result in audits by the State. These audits will assuredly be performed by one of Delaware’s 3rd party contingent fee audit firms.
All Delaware incorporated companies, including non-Delaware entities that have Delaware operating subsidiaries, can benefit significantly from participating in the VDA Program. In addition to the avoiding the cost of a lengthy audit, failure to timely enroll will also result in increased financial risks through the assessment of interest and penalties, which are fully waived in the VDA Program.
If your company received an invitation and/or would like to discuss your company’s unclaimed property risks, Clarus Partners offer a full suite of unclaimed property services and can assist you with the decision to determine: (i) if the VDA program is the best option for your company; (ii) performing a VDA review; and/or (iii) audit defense should you choose not to accept the invitation. Clarus Partners has recognized industry experts with notable experience in the area of unclaimed property and would welcome the opportunity to partner with you to efficiently manage your VDA review and aid in achieving unclaimed property compliance for your company. Sonia Walwyn, our recognized industry expert, is a licensed attorney and CPA with more than 30 years of unclaimed property experience. For more information or to schedule a consult, contact Sonia Walwyn at [email protected] or (630) 216-9954.