Another Round of VDA Invitation Letters for Unclaimed Property Issued from Delaware
On Sept. 20, 2019, the Delaware Secretary of State’s office has once again mailed out letters to companies inviting them to enter into the Delaware voluntary disclosure agreement (VDA) program with respect to unclaimed property. See our earlier alert dated March 25, 2019 here.
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 to the state’s VDA program are typically sent to the Chief Financial Officer, but these letters can often be overlooked or routed to the incorrect person for action.
What to Do If You Get a Letter
If you receive one of these letters, your organization must decide whether to:
- Enter the voluntary disclosure program or
- Undergo a state 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 (phone: 864-241-2135 email: firstname.lastname@example.org) or T.R. Yoder (phone: 864-478-1140 email: email@example.com) in the CBIZ National State & Local Tax Practice.