Your company may be on the list for a new round of invitations from the State of Delaware.

The mailings invite companies to voluntarily gain compliance with the State’s escheat law by accepting and timely responding to the invitations. While the invitations may look like C-Suite junk mail, do not be fooled! This request for your “RSVP” can be costly if missed!

New Round of Delaware VDA Notices Sent

Did your company receive one of the new Secretary of State’s invitations to participate in Delaware’s Unclaimed Property Voluntary Disclosure Program (“VDA” or “Program”)? Check-in with the C-Suite as these invitations are usually addressed to the CFO, CEO or the company’s Delaware registered agent. A new round of invitations was recently mailed. These invitations provide for an RSVP period of 90-days for companies to respond and request participation in the Program.

Failure to timely respond will automatically result in invited Companies being audited by one of Delaware’s 3rd party contingent fee audit firms.

All Delaware incorporated companies, including non-Delaware entities that have Delaware operating subsidiaries, can benefit significantly from participating in the Program. In addition to the cost of a lengthy audit, failure to timely RSVP will also result in increased financial risks through the assessment of interest and penalties, which are fully waived in the VDA Program.

If your company received an invitation and/or would like to discuss your company’s unclaimed property risks, Clarus Partners offer a full suite of unclaimed property services and can assist you with the decision to determine: (i) if the VDA is the best option for your company; (ii) performing a VDA review; (iii) and/or audit defense should you choose not to accept the invitation. For more information, contact Sonia Walwyn at swalwyn@claruspartners.com.