Unclaimed Property: Is the Delaware Voluntary Disclosure Agreement Right for You?

March 7, 2024:

Hundreds of companies will be invited to participate in Delaware's unclaimed property Voluntary Disclosure Agreement ("VDA") program this year. The latest mailings were sent on February 23, 2024. Companies ("Holders") have 90 days to enroll and failure to respond will likely result in an audit.

Although there are no specific criteria for Delaware to select holders for audits or VDA invitations, gaps in reporting history or recent acquisitions/mergers could land your business on the target list. If you believe your company may be out of compliance, you can opt into the program even if you do not receive an invitation.

VDAs allow holders to report past-due property without the risk of an audit. Additionally, holders that reach a settlement agreement as a result of completing the Delaware VDA program receive a waiver of interest and penalties.

The VDA program is a beneficial option; however, companies should consider expert assistance when determining the next steps. Several factors should be discussed (such as prior mergers and acquisitions, record availability, and prior filing history) when responding to the invitation.

The Advisely professionals have extensive experience with Delaware's programs, including prior third-party audit work. Our experts offer robust and cost-effective solutions to our clients seeking assistance with all aspects of unclaimed property compliance.