Delaware Sends New Round of VDA Invitations – What Businesses Need to Know

On August 15, 2025, the Delaware Secretary of State issued another wave of invitations to companies to join its Unclaimed Property Voluntary Disclosure Agreement (VDA) Program. These notices are part of Delaware’s continued push to increase compliance and revenue through proactive enforcement.

The implications are serious. Failure to respond within 90 days results in an automatic audit referral to the Department of Finance, effectively closing the door on the more favorable VDA option.

Why the Delaware VDA Program Matters

Delaware is known as the most aggressive state in unclaimed property enforcement. The VDA program offers businesses the chance to come forward voluntarily, resolve past-due property obligations, and avoid the significant costs and risks of audit.

Ignoring or delaying a response to the August 15 invitations could expose companies to:

• Extended lookback periods 

• State-directed estimation techniques 

• Reputational harm

Key Takeaways from the August 2025 Invitations

1. The invitation is mandatory

A Delaware VDA notice is not a courtesy—it requires a formal response. Companies that fail to act within 90 days will be immediately placed in the state’s audit program, with no chance to return to the VDA track.

2. Delaware expects enterprise-wide compliance

Even if the invitation was sent to one entity, Delaware’s position is clear: all Delaware-incorporated entities under the corporate umbrella should be reviewed. That includes dormant subsidiaries, discontinued business lines, or legacy accounts that may still carry risk

3. Verified reports are becoming a compliance test

In addition to VDA invitations, Delaware continues to issue verified report notices. These require companies to affirm their annual unclaimed property compliance and provide copies of policies and procedures. Failure to comply—or an incomplete submission—can trigger immediate audit.

4. Unclaimed property hides in unexpected places

Even if balances were written off years ago, Delaware considers them reportable during its lookback window.

What Businesses Should Do Now

With the August 15 notices in circulation, companies should immediately:

• Confirm receipt of a VDA invitation and mark the 90-day deadline

• Evaluate all Delaware-incorporated entities, not just the one named in the letter

• Review historical records and write-offs for potential exposure

• Establish or update internal compliance policies to prepare for verified report requirements

• Engage experienced unclaimed property advisers to navigate the process efficiently

  
  

Advisely’s Perspective

At Advisely, we’ve seen firsthand how costly Delaware audits can become when companies miss the VDA window. Conversely, the VDA program—when handled proactively—provides a cooperative path to compliance, with less disruption, lower liability, and a better relationship with regulators.

The August 15 invitations represent both a warning and an opportunity. By acting now, companies can take control of their compliance strategy rather than leaving it to the state’s auditors.

Final Thought

If your company received a Delaware VDA invitation dated August 15, 2025, the clock is already ticking. The 90-day response period is critical. Don’t wait until Delaware takes the lead—this is the time to get ahead of enforcement, reduce risk, and create a lasting compliance framework.

Advisely helps organizations nationwide navigate the VDA process, manage due diligence and reporting, and strengthen compliance programs for the future.

Contact us today to discuss your strategy.