Received a Delaware VDA Invitation in November? Responses Due by Feb. 13th to Avoid Audit!

As we mentioned in our previous blog post, Delaware mailed out invitations to the Secretary of State’s Voluntary Disclosure Program (VDA Program) on November 15, 2024.  If a holder fails to enroll in the VDA program within 90 days, the company will be referred to the Department of Finance for an unclaimed property audit.

Delaware has the authority to request that companies enter the program to determine whether the company has complied with Delaware’s unclaimed property law.

As a reminder, the 90-day period to enroll if your company received a VDA invitation is coming up this week, on February 13, 2025.

Delaware’s VDA program has several benefits when compared to an audit.  They are typically less time-consuming and less of a drain on the company’s financial and internal resources.  The holder has greater control over the self-review process and determines the property types that will be within the scope of the VDA.  Successful completion of the VDA program includes a waiver of penalties and a release of liability with respect to the entities and properties included in the VDA.

As a reminder the Delaware VDA program is not always in a holder’s best interest, so it is important to be aware of the risks of enrollment.  For example, a holder can be barred from asserting legal positions in the future, including the state’s use of estimation.

Delaware has also announced the 2025 mail dates* for the next round of VDA invitations:

• April 11, 2025
• August 15, 2025

*Note that these are approximate mail dates and are subject to change.

If you are have recently received any type of outreach from Delaware, please Contact Us so that we may assist you in determining your next steps.

*Content contained in this article is considered accurate as of the publish date.