Delaware: Unclaimed property voluntary disclosure | KPMG | US

Delaware: Companies to be invited, unclaimed property voluntary disclosure program

Delaware: Unclaimed property voluntary disclosure

Delaware’s Secretary of State has issued an email to all holder advocates indicating plans to invite numerous companies that have been identified as potentially non-compliant with Delaware’s unclaimed property reporting requirements to participate in the state’s unclaimed property voluntary disclosure agreement (VDA) program.

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Companies receiving these invitations will have 60 days from the date of receipt to request participation.  Companies that receive invitations, but choose not to participate in the VDA program, will be referred to the State Escheator’s Office for audit examination.

In addition, Delaware Regulation 104, Department of Finance Abandoned or Unclaimed Property Reporting and Examination Manual, was formally approved for adoption on October 1, 2017 with an effective date of October 11, 2017. The finalization of this regulation starts the clock ticking for businesses that were under audit by the state prior to the enactment of Delaware Senate Bill 13 on February 2, 2017. That legislation established a 60-day period that begins from the effective date of the final audit regulations (now set for October 11, 2017) for those businesses to elect certain audit acceleration options.

Specifically, holders under audit since July 22, 2015, and earlier will have the option to convert to the state’s VDA program, and holders whose audits were initiated subsequent to July 22, 2015, but prior to the adoption of Senate Bill 13 will have the option to convert to the state’s expedited audit program. 

KPMG observation

Because 60 calendar days from October 11, 2017 falls on a weekend, it is unclear whether the deadline to elect these options will be Monday, December 11, 2017. Further guidance may be issued from the Secretary of State’s office.  

 

Read an October 2017 report [PDF 125 KB] prepared by KPMG LLP

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