The Delaware Secretary of State (SOS) has posted the invitation mailing dates of its 2021 unclaimed property Voluntary Disclosure Agreement (SOS VDA) Program. The goal of the SOS VDA Program is to increase the number of annual abandoned or unclaimed property compliance filings and to decrease the number of audit examinations. To accomplish this, the Delaware SOS mails “invitations” throughout the year to companies to identify those that are not in compliance with Delaware unclaimed property reporting requirements and invite them to join the VDA Program.
The first round of letters for the 2021 program will be mailed on February 19, followed by mailings on May 14 and August 20, 2021. If your company is incorporated in Delaware, keep an eye out for these letters, especially if your company is not working onsite so you can respond in a timely manner. Companies that receive such an invitation are required to respond within sixty days. Failure to respond will result in your company name being provided to Delaware Department of Finance, who will initiate an audit.
The SOS VDA Program is available to any company that has possession, custody, or control of abandoned or unclaimed property on its books and records which may be reportable to the State of Delaware. Those who are currently completing a VDA with the Delaware Department of Finance, have previously enrolled in the SOS VDA Program but withdrew, or have been removed from the SOS VDA Program for failure to work in good faith, are among those not eligible to apply.
The SOS VDA Program offers numerous benefits to applicants and is designed to be business friendly. The state works with a company to reach an agreement upon a quantification methodology and amount which will be reported by the company. The SOS VDA Program is faster and less expensive than an audit examination and allows the company to conduct a self-review and determine the scope that review. Plus, all penalties and interest are waived by the SOS when the Program is completed.
For more, information, visit the Delaware SOS VDA Program webpage. (2021 SOS VDA Invitations Mailing Dates Notice, February 2021)