The following provides an overview of the Unclaimed Property Voluntary Disclosure Agreement Program being administered by the Delaware Secretary of State (“SOS VDA Program”), under Chapter 11 of Title 12 of the Delaware Code in a manner that is business-friendly and that fairly enforces the abandoned/unclaimed property law.
Holders are eligible to enroll in the SOS VDA Program until September 30, 2014. The SOS VDA Program is scheduled to sunset on June 30, 2016 and all enrollees must complete their VDA by June 30, 2016.
For more information go to www.DelawareVDA.com
What are the Benefits of the SOS VDA Program?
- Reduced Lookback – Under the SOS VDA Program, a Holder’s lookback period is back to 1996 if the Holder enrolled by June 30, 2013 (or 1993 if the Holder executes Form VDA-1 from July 1, 2013 to September 30, 2014).
- Release Agreement – Upon the completion of the SOS VDA Program and execution of Form VDA-2, the State waives its right to audit the Holder with regard to the entities and property types included in the VDA, unless (1) there is evidence of fraud or willful misrepresentation by the Holder in its participation in the SOS VDA Program, or (2) the Holder fails to fulfill its future annual reporting requirements for the next three reporting cycles.
What are the expectations of the SOS VDA Program?
The SOS VDA Program is not an audit, however Holders and their Advocate Firms are expected to conduct and document a detailed self-review and present findings and supporting documentation of such review to demonstrate whether the Holder has any past due unclaimed property based on transactions beginning as early as January 1, 1996 or 1993 depending upon the date of enrollment, as discussed above.
Who is Eligible to enroll in the SOS VDA Program?
The SOS VDA Program is available to all entities except those who are currently under audit or a Department of Finance VDA. Holders that have enrolled include the following:
- Holders that have never filed;
- Holders that have identified under reporting in certain property types and/or general ledger accounts;
- Holders that have made an acquisition which may have under or not reported unclaimed property;
- Holders that have participated in a prior VDA but have underreported since their last VDA;
- Holders that have completed a prior unclaimed property audit; or
- Trusts holding property due to another party.
Department of State Contact
Questions can be directed to:
Alison J. Iavarone
Unclaimed Property VDA Administrator
Department of State
Carvel State Building
820 N. French Street, 4th Floor
Wilmington, DE 19801