Stay Afloat in Compliance Waters: Delaware’s VDA Program Provides A Reasonable Compliance Option for Businesses.
On November 15, 2024, Delaware’s Secretary of State sent out the latest round of invitation letters. These letters encourage companies to participate in the state’s Unclaimed Property Voluntary Disclosure Agreement (VDA) Program in order to gain compliance with the state’s unclaimed property law.
The initiative is Delaware’s way of offering businesses a way to get on board with compliance before facing a potential unclaimed property audit. The VDA Program is a cost-efficient alternative to a Delaware audit. It spares businesses from the often rocky waters of penalties and interest. This round of letters will reach CFOs, CEOs, and Delaware registered agents across a range of industries.
If your company receives a Delaware VDA invitation, it’s time to act quickly. With a 90-day enrollment period, responding promptly is essential. Refusing or ignoring the invitation will automatically place your company on course for a formal audit. This would be done by Delaware’s third-party contingent fee audit firms, which can be lengthy, costly, and complex.
By enrolling in the VDA Program, businesses can achieve compliance while sidestepping hefty penalties and interest. They can also benefit from the process of scheduling outstanding and voided checks for review.
Delaware’s VDA Program Can Be A Safe Harbor
Participation in Delaware’s VDA Program offers clear advantages, especially for Delaware-incorporated companies and businesses with Delaware operating subsidiaries. Key benefits include:
- Audit Avoidance: Delaware’s audits can be extensive, involving rigorous reviews by third-party audit firms often working on a contingency basis. The VDA Program provides a less rigorous alternative. It allows companies to manage and resolve the VDA in a much shorter timeframe and with less aggressive testing procedures.
- Waiver of Penalties and Interest: Unlike audits, the VDA Program fully waives penalties and interest. Thus making compliance more affordable and manageable. The financial risks associated with unclaimed property compliance can be significant, but the VDA Program helps minimize these costs.
- Proactive Compliance: Delaware’s VDA Program empowers businesses to take control of their unclaimed property obligations before they spiral into more complicated, resource-draining processes. By steering your company’s compliance strategy through the VDA Program, you’re setting a course for smoother waters and a more predictable compliance process in the future.
Smooth Sailing Ahead For The Delaware VDA Program: How Clarus Partners Can Help
Navigating unclaimed property compliance and managing VDA requirements can feel like steering through unfamiliar waters. Clarus Partners is here to help you chart a steady course through Delaware’s compliance channels.
Our team, led by industry expert Sonia Walwyn, offers a full suite of unclaimed property services. With over 30 years of unclaimed property expertise, Sonia and our team are equipped to help you achieve compliance as efficiently and effectively as possible.
Our unclaimed property services include:
- VDA Eligibility Assessments: Helping determine whether the VDA Program aligns with your company’s compliance goals.
- VDA Review Execution: Conduct thorough analyses and reviews to ensure your business meets Delaware’s VDA Program standards and regulatory guidelines without overreporting.
- Audit Defense: For companies that choose not to enroll in the VDA Program, we provide robust audit defense services. Thus helping minimize the impact of unclaimed property assessments; and
- Annual Compliance: Assisting companies navigate the annual compliance filing requirements by states and reporting jurisdictions.
Preparing Your Compliance Strategy with Clarus Partners
Don’t let compliance challenges take your business off course. By engaging with the VDA Program and consulting with Clarus Partners, your company can stay clear of unnecessary risks and costs. Whether you’re weighing your VDA Program options or looking to safeguard against potential audits, we’re here to help.
Contact Sonia Walwyn, our seasoned expert in unclaimed property compliance, to discuss your company’s specific needs. Schedule a consultation at [email protected] or (630) 216-9954 to set your compliance course on smooth waters.
Smooth Sailing in Compliance—Let Clarus Partners Be Your Guide!