The Delaware Secretary of State's office announced they have issued letters to companies on or around April 11, 2025, inviting them to enter into the Delaware voluntary disclosure agreement (VDA) program concerning unclaimed property. We also understand that Delaware intends to send further rounds of letters during the year, the next on or around Aug. 15.
Please be aware that if companies in receipt of these letters do not respond within 90 days, they will be referred to the Delaware Department of Finance for audit. Once an audit notification is issued, companies will no longer be able to enter into the VDA program.
It is important for company executives, accounting and tax professionals, and mail room staff to be on the lookout for these letters so that they can timely respond. Invitations are typically sent to the chief financial officer, but these letters can often be overlooked, mistaken as spam/junk or routed to the incorrect person for action.
Recipients of these letters must decide whether to (1) enter the voluntary disclosure program or (2) be prepared to undergo an audit. While the voluntary disclosure program can be a rigorous and arduous process, in our experience, it can be a better alternative than undergoing an audit. Audits are usually conducted by third-party contract auditors hired by the state and paid on a contingent fee basis.
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