The Delaware secretary of state is expected to send Voluntary Disclosure Agreement (VDA) notices to select corporations on July 22, 2022. If you receive a notification and have an escheatment obligation to Delaware and 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.
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 & 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 & 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.
Corporations enrolled in the VDA are encouraged to leverage experienced unclaimed property advocates to help navigate the program. Guidehouse possesses a thorough understanding of the VDA program requirements and is qualified to help guide Holders through the program in an efficient and streamlined manner.
This article was authored by Alex DeFruscio.