Delaware Alert: State Issues More VDA Invitation Letters for Unclaimed Property (article)
The Delaware Secretary of State’s office contacted approximately 200 companies on or around February 15, 2019 inviting them to enter into the Delaware voluntary disclosure agreement (VDA) program with respect to unclaimed property. It is also our understanding that Delaware intends to send several more rounds of letters during the year.
Please be aware, if companies in receipt of these letters do not respond within 60 days, those companies will be referred to the Delaware Department of Finance for audit. Once an audit notification is issued, companies will no longer have an opportunity to enter into the VDA program.
It is important for company executives, accounting and tax professionals, and mail room staff be on the look-out for these letters so that timely responses can be made. Invitations are typically sent to the Chief Financial Officer, but these letters can often be overlooked or routed to the incorrect person for action.
Recipients of these letters must decide whether to (1) enter the voluntary disclosure program or (2) undergo audit. While the voluntary disclosure 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 paid on a contingent fee basis.
For more information, contact Kellie Lanford or T.R. Yoder in the CBIZ National State & Local Tax Practice.
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