New Round of Delaware VDA Notices Sent
On February 18, 2022, Delaware’s Secretary of State (“Delaware” or “State”) sent a new round of letters to companies inviting them to participate in the State’s Voluntary Disclosure Program (VDA) with an RSVP required within 90-days. Failure to respond within the 90-day time frame will automatically result in your company being audited by one of the State’s 3rd party contract/contingent fee audit firms.
All Delaware incorporated companies, including non-Delaware companies that have Delaware operating subsidiaries, whether or not the company is doing business in Delaware, should check with their C-Suite immediately to ensure that these invitations, usually addressed to the CFO, CEO or the company’s Delaware registered agent, are not discarded or ignored and that the deadline to accept the invitation to participate in the VDA Program is met. In addition to the cost of a lengthy audit, failure to timely RSVP will also result in increased financial risks in the form of interest and penalties, which are fully waived in the VDA Program. The interest and penalty assessment are in addition to any underlying liability found during the audit.
If you 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 if the VDA is the best option for your company as well as well as with a VDA review and/or audit defense. For more information, contact Sonia Walwyn at [email protected].
By Sonia Walwyn