The Delaware Secretary of State’s office will be issuing a new round of letters to companies on or around Aug. 15, 2025, inviting them to enter into the Delaware voluntary disclosure agreement (VDA) program concerning unclaimed property.
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 mailroom staff to be vigilant about these letters so that they can respond promptly. 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 VDA program or (2) be prepared to undergo an audit. While the VDA 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 are often paid on a contingent fee basis.
If you receive an invitation letter or audit notice from Delaware or any other state, please contact us as soon as possible. We can help you navigate the voluntary disclosure process and mitigate exposures. Contact Kellie Lanford at 864-241-2135 or Michael Goldman at 864-241-0455 in the CBIZ National State & Local Tax Practice for additional details.
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