Are You Aware of Delaware’s Newly Updated Regulations?

Earlier this year, the State of Delaware approved Senate Bill 13 as well as Senate Substitute 1 for Senate Bill 79 which overhauls their Unclaimed Property Audit Program. The final step in this overhaul was to adopt new regulations on estimation techniques for companies under audit or participating in a Voluntary Disclosure Agreement (“VDA”). These regulations became effective October 11, 2017.

On the heels of these new procedures, the State is offering companies currently under audit the ability to convert to either a VDA or Accelerated Audit.  The conversion options are dependent on when the audit commenced – see details below:

• Companies under audit on or before July 22, 2015 may convert to a VDA. To convert to a VDA, you must submit the request form in writing to both the Delaware Secretary of State and the State Escheator.
• Companies under audit on or before February 2, 2017 may convert to an accelerated audit. To convert to an Accelerated Audit, you must submit the request form to the State Escheator.

For both conversions, the State must receive the request by December 11, 2017.  All appropriate forms can be found on the Delaware VDA website:  https://vda.delaware.gov.

‍In addition, the Secretary of State’s office will begin sending letters to holders, deemed to be non-compliant, inviting them to participate in Delaware’s VDA program.  Companies that do not respond to the letter within 60 days of receipt, will be referred to the State Escheator’s office for potential audit.

If you believe you are not in compliance with your Unclaimed Property reporting obligations, which exist in every state, or have additional questions regarding the latest news on Delaware, please contact Eric Mauldin.