Received a Delaware Voluntary Disclosure Program Invitation? Understand the Benefits
This post was updated on January 30, 2023 for accuracy and comprehensiveness.
The Delaware secretary of state plans to mail Voluntary Disclosure Agreement (VDA) notices to select corporations on February 23, 2024 and July 26, 2024. If your firm received a notification, are obligated to escheat Unclaimed Property to Delaware, or your corporation or subsidiaries are incorporated in the State of Delaware, Guidehouse encourages clients to understand the potential benefits of enrolling in the program.
Avoid Third-Party Audit — Distinct from an Unclaimed Property Audit, the VDA program is designed to be Holder friendly. During the VDA engagement, Holders work with the state to reach an agreement regarding quantification practices and the total amount the Holder has the obligation to escheat.
Customized Scoping —During the VDA process, the Holder has the option of selecting the property types and legal entities included in the review.
Reduced Review Periods — The Delaware VDA lookback period is 10 years, plus the Dormancy period for Holder’s specific property types (typically five years).
Reduce Penalties and Interest —The Delaware VDA program offers the potential for waiving all penalties and interest for entities included in the scope of the program.
Attain Nationwide Compliance — The review conducted during the VDA engagement will serve as a catalyst in identifying and reporting unclaimed property across additional states where compliance risks may be discovered.
Receive a Release and Waiver —After the VDA program is complete, Delaware will issue a release and waiver of liability for all past-due properties, allowing for Holders to file unclaimed property reports in compliance on a go-forward basis.
"The Delaware Voluntary Disclosure Program is a Holder friendly process, which allows companies to conduct a self-review of their Unclaimed Property exposure in an effort to reduce potential fines / penalties and aid enrollees ongoing compliance efforts."
— James Ouellette, Director, Financial ServicesCorporations enrolled in the Delaware VDA program are encouraged to leverage experienced unclaimed property advocates to help navigate the process. Guidehouse possesses a deep understanding of the VDA program requirements and is qualified to help assist Holders through the process in an efficient and streamlined manner.
This article is co-authored by Alex DeFruscio.
