The
Unclaimed Property and Tax Risk Advisory team at Duff &
Phelps has learned that the Delaware Department of Finance sent a
general notice to all Holders who elected to enroll in
Delaware's unclaimed property expedited audit program in
December 2017. This is the second general notice sent to program
enrollees, with the first sent in July 2018.
As we
reported last year, the Delaware Department of Finance adopted
Regulation 104 in October 2017, offering Holders under Delaware
unclaimed property audit three choices to complete their
audit:
- Convert to the Voluntary Disclosure Program;
- Convert to an accelerated audit with a two-year deadline and with the potential for waivers of interest and penalty; or
- Remain in the current audit program with interest and penalty to be assessed.
Holders were required to decide by December 11,
2017.
The December 2018 general notice serves as a reminder that one
half of the allotted two-year period has expired and the Delaware
Department of Finance reserves the right to expel any Holder from
the expedited audit program that does not complete the examination
on time. A copy of the letter may be viewed here.
The Delaware Department of Finance further asserts that:
- Holders must respond to all record requests within 30 days, unless agreed upon in writing.
- One half of the two-year work program must be completed at this time.
- Holders in Phases III or IV of the program must complete the examination by the end of 2018.
- Holders in Phase II of the program must complete the examination by the end of June 2019.
- Holders in Phase I of the program must complete the examination by the end of 2019.
Additionally, the Delaware Department of Finance states it will
complete all examinations and provide all Holders examination
reports by December 11, 2019, with preliminary examination reports
provided by November 11, 2019. An offer is made to bifurcate any
examination by property type or entity. All offers are contingent
upon proper Holder cooperation. The notice states that the
Department of Finance will work with any Holder in a reasonable and
fair manner so long as communication remains
open.
Duff & Phelps is deeply experienced with the laws and
regulations driving unclaimed property compliance in Delaware. We
encourage all Holders enrolled in the
Delaware unclaimed property expedited audit program to contact
our team for a complimentary consultation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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