Delaware Unclaimed Property Updates – January 2024

The Delaware Secretary of State (SOS) has released the scheduled mailing dates for this year’s invitations* to enroll in the voluntary disclosure program (VDA program):

• February 23, 2024
• July 26, 2024

* Mail dates are subject to change by the state.

Holders that do not enroll in the VDA program within the 90-day notice period referenced in the letter will be referred to the Department of Finance for an unclaimed property audit.

Delaware’s Additional Enforcement Tools

Delaware has additional enforcement tools to ensure holder compliance with the unclaimed property law, including requests from the Department of Finance for a verified report or a compliance review.

Senate Bill 281, effective as of June 30, 2022, authorizes the state to request such reports and conduct these reviews even if the holder is in compliance with the unclaimed property law.

Unlike the invitations to enroll in the VDA program, if you receive a Notice Requiring a Verified Report there is a tight 30-day period in which you must respond, and the process must be completed within one year.  Delaware also utilizes the assistance of third-party audit firms in these reviews.

The requests for verified reports are limited to the state’s review of the holder’s most recent report filing.  Holders must provide the following: 1) a completed verified report form; 2) a list of legal entities included in the verified report; and 3) a copy of the holder’s unclaimed property policies and procedures.  A compliance review may be initiated by the state if the verified report is found to be inadequate, which will require additional supporting documentation to be provided by the holder.

The failure to respond to or complete a request for a verified report or a compliance review permits the state to proceed to audit without providing the holder with an opportunity to enter the VDA program.  Prior to completion of the verified report or compliance review process, however, a holder can opt to enroll in the VDA program.

Taking into consideration these various methods employed by Delaware, it is essential that you are knowledgeable of these various tools of enforcement to be able to respond appropriately to any communication from Delaware, particularly if your business is incorporated or has significant operations in the state.

If you recently received any communication from Delaware, MarketSphere would welcome the opportunity to assist you in considering your available options and determining your next steps.