Unclaimed Property Compliance And Consulting Services
Navigate the world of unclaimed property through the unique expertise of Clarus Partners.
UPDATE
DID YOU RECIEVE A DELAWARE VDA INVITATION LETTER?
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.
While company details vary, Delaware VDA invitation letters generally follow a consistent format:
- Letterhead: Delaware Department of State
- Addressee: Typically sent to a senior officer such as the CFO or General Counsel, with a copy often sent to the company’s registered agent
- Subject line: RE: Secretary of State’s Abandoned or Unclaimed Property Voluntary Disclosure Agreement Program
- Body: States the company may be out of compliance with Delaware’s 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: Notes that failure to enroll will result in referral to the Delaware Department of Finance for audit (often handled by third-party auditors)
Delaware VDA Invitation Letters – Frequently Asked Questions
What is a Delaware VDA invitation letter?
A Delaware VDA (Voluntary Disclosure Agreement) invitation letter is sent by the Delaware Department of State to companies it believes may not be in compliance with unclaimed property laws. The letter formally invites the company to participate in the state’s VDA program, which allows businesses to voluntarily review and report past-due unclaimed property in exchange for reduced penalties and a collaborative resolution process.
What happens if I ignore a Delaware VDA letter?
Ignoring the letter is not an option. If you fail to respond by the stated deadline (typically 90 days from the date of the letter), your company will be referred to the Delaware Department of Finance for audit. Audits are usually conducted by third-party firms, can last multiple years, and often result in higher costs, penalties, and interest compared to enrolling in the VDA program.
What is the deadline for Delaware VDA letters?
Each Delaware VDA invitation letter sets a strict 90-day enrollment deadline from the date of the letter. If a company fails to enroll within that timeframe, the matter is referred to the Delaware Department of Finance for audit.
Delaware issues new rounds of VDA invitation letters periodically, so deadlines will vary depending on the specific mailing. The key takeaway is that the clock starts as soon as your company receives the notice — and missing the 90-day window almost always results in an audit referral.
What’s the difference between a VDA and an audit?
- VDA: Collaborative, company-controlled process. You review records, disclose past-due unclaimed property, and settle obligations directly with Delaware. Typically faster, less costly, and avoids penalties and interest.
- Audit: State-controlled, often run by third-party audit firms. Invasive, time-consuming (can stretch into years), and generally more expensive due to assessments, penalties, and professional fees.
Who receives Delaware VDA letters?
Delaware typically addresses these letters to a senior officer, such as the CFO or General Counsel. Copies may also be sent to the company’s registered agent. If you are an executive and received such a letter, you should act immediately to confirm whether your company is already enrolled, needs to enroll, or is at risk of audit referral.
What should my company do if we receive a Delaware VDA letter?
- Do not ignore it — the letter is a formal notice.
- Review your company’s unclaimed property records across all Delaware-incorporated entities.
- Determine a response strategy — VDA enrollment vs. audit.
- Submit Form VDA-1 electronically by the deadline to enroll.
- Engage experts — Clarus Partners has deep experience with Delaware VDA cases and can guide your company through the entire process, from initial response to final resolution.
Concerned about a Delaware VDA letter? Don’t wait until it’s too late. Contact Clarus today to discuss your options and avoid the costly risk of an audit.
Unclaimed Property - Compliance And Consulting Services
Key Unclaimed Property Risk Factors
- Did your company receive an audit notice from one or more states?
- Did your company receive an invitation from Delaware to participate in the state’s unclaimed property VDA program?
- Did your company receive notice for a self-review from New York, Illinois, or any other state?
- Did your company fail to file annual unclaimed property reports or neglect key property types from your filings?
- Has your company merged with or acquired entities triggering successor liability?
- Do you need assistance with UP annual filings, catch-up filings, or establishing policies & procedures specific to unclaimed property?
- Does your company use third-party firms to administer specific services like payroll, accounts payable, or workers' compensation?
If you answered “Yes” to any of the above, you're in the right place for comprehensive unclaimed property solutions.
What Is Unclaimed Property?
Unclaimed property, also commonly referred to as “escheat", is any obligation owed by a company to its employees, vendors, customers, or shareholders that remain unclaimed when a company loses contact with the owners for a prescribed period known as the "dormancy period." Upon the expiration of the dormancy period, the unresolved liabilities are deemed to be abandoned and unclaimed. All companies regardless of industry, size, or location, can generate UP.
Key Facts
- UP Is Not A Tax: UP laws are consumer-oriented statutes, intended to protect the rights of owners.
- Ownership: The person or entity entitled to the funds owns them forever. States hold the funds as sole custodians for the owners.
- State Authority: This is limited to the rights of the owners. The states have no independent right to assess or demand UP as UP is not a tax.
Unclaimed Property Services
Sonia Walwyn and our expert team can assess your company's unclaimed property risk. We can also help you find effective ways to ensure compliance. Sonia has over 30 years of UP experience and is both a licensed CPA and attorney.
We can assist with audit defense, voluntary compliance, annual compliance, policies and procedures review/implementation, and asset recovery. Our suite of services includes:
Voluntary Compliance Programs
- Voluntary Disclosure Agreement (VDA) in states such as Delaware
- Voluntary Compliance Agreement (VCA) in states such as New York
- Voluntary Compliance Program (VCP) in California
Audit Defense
- Defend Against Aggressive State Tactics (single and multi-state audits)
- Achieve Fair Settlements
Exposure Analysis
- Identify Key Areas of Risk
- Recommend Path to Achieve Effective Compliance
Process Development
- Identify Best Practices to Ensure Timely Compliance
- Draft and Implement Written Policies & Procedures
Annual Compliance
- Comply with UP Laws
- Achieve Timely Compliance
Asset Recovery
- Claim & Recover Property owned by your company
Why Clarus Is The Clear Choice
Clarus Partners understands the complexities of unclaimed property and the potential financial risks for businesses. Our team has experience in both consulting and compliance and can assist in ensuring that your company adheres to the applicable UP requirements. We can assist with audit defense, voluntary compliance, annual compliance, policies and procedures review/implementation, and asset recovery.
Need clear guidance on UP risks? Contact Clarus Partners to discuss your needs and learn how we can help you save money and comply efficiently. Take the steps to protect your company from state audits and the assessment of state-imposed interest and penalties.
Request Consultation
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