Delaware recently announced on its website that the next round of invitations to the Secretary of State’s voluntary disclosure agreement program (VDA program) will be mailed on or around November 15, 2024.
Companies should check their mail as these letters are time sensitive (and may end up in the wrong department or addressed to the wrong individual). Failure to enroll in the VDA program within the 90-day notice period referenced in the letter will result in the referral to the Delaware Department of Finance for an unclaimed property audit.
As we have discussed in our prior blog posts, the VDA program is one of several outreach methods employed by Delaware to ensure that companies are in compliance with the unclaimed property law. Other methods of enforcement include verified reports and compliance reviews.
The benefits of enrollment in the VDA program include:
The VDA program can also benefit companies that wish to voluntarily report past-due property, or for those that will soon undergo a merger or acquisition. Remember, a company does not need to wait for an invitation to enroll in the VDA program.
Note, however, that the Delaware VDA program is not always in a company’s best interest, so it is important to know the risks of enrollment. For example, participation can bar a company from legally challenging Delaware’s positions in the future, including the state’s use of estimation.
If you have recently received any type of outreach from Delaware, please Contact Us so that we may assist you in considering available options and determining your next steps.
*Content contained in this article is considered accurate as of the publish date.
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