{{item.videoDuration}}
{{item.title}}
{{item.text}}
{{item.videoDuration}}
{{item.title}}
{{item.text}}
Delaware verified report notices require prompt action from unclaimed property holders
December 2023
In brief
The Delaware Department of Finance (DOF), pursuant to Section 1170 (a) - Request for report of property; compliance reviews in the Delaware unclaimed property statute, is sending notices to request that unclaimed property holders provide evidence to support that they filed a 2022 unclaimed property report along with a copy of the company’s unclaimed property policy and procedures. The DOF also is requesting a listing of the legal entities that were covered in the verified report.
The DOF notices are assigned to an audit firm that is assisting the state through these reviews.
Be aware: Recipients of the notices must respond within 30 days from the date of notice.
In detail
Background
Effective June 30, 2022, Delaware amended the state’s unclaimed property statute to allow the DOF to subject unclaimed property holders to an audit when they fail to complete a compliance review. The DOF can require a holder to file a “verified report” of unclaimed property and to submit to a “compliance review,” which essentially is a mini-audit that may involve voluminous information requests. Companies objecting or not responding to the DOF’s requests could be subject to an audit, foreclosing any opportunity to enter into a voluntary disclosure agreement (VDA) program. For more information see Amendments to Delaware statute provides for unclaimed property audits, other changes.
Reporting requirements
The notices require holders to submit (1) a notarized verified report for the most recent filing year, (2) a list of related legal entities, and (3) a response to questions about written unclaimed property compliance policies and procedures (including a request for any copies of available policies and procedures).
Observation: Delaware appears to be initiating a large-scale campaign to request verified reports. The DOF has contracted with a handful of third-party audit firms to review holders’ submissions. The communications generally are being sent to the CFO or CEO of the holder organization.
Action item: Companies receiving a notice letter to submit a verified report must address the issue promptly by responding within 30 days from the date of notice. The reporting process does not preclude a holder from participating in the VDA program, which may provide significant benefits, such as relief from interest and penalties.
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{contentList.loadingText}}
Contact us
Follow us
