Delaware’s Secretary of State has issued an email to all holder advocates indicating plans to invite numerous companies that have been identified as potentially non-compliant with Delaware’s unclaimed property reporting requirements to participate in the state’s unclaimed property voluntary disclosure agreement (VDA) program.
Companies receiving these invitations will have 60 days from the date of receipt to request participation. Companies that receive invitations, but choose not to participate in the VDA program, will be referred to the State Escheator’s Office for audit examination.
In addition, Delaware Regulation 104, Department of Finance Abandoned or Unclaimed Property Reporting and Examination Manual, was formally approved for adoption on October 1, 2017 with an effective date of October 11, 2017. The finalization of this regulation starts the clock ticking for businesses that were under audit by the state prior to the enactment of Delaware Senate Bill 13 on February 2, 2017. That legislation established a 60-day period that begins from the effective date of the final audit regulations (now set for October 11, 2017) for those businesses to elect certain audit acceleration options.
Specifically, holders under audit since July 22, 2015, and earlier will have the option to convert to the state’s VDA program, and holders whose audits were initiated subsequent to July 22, 2015, but prior to the adoption of Senate Bill 13 will have the option to convert to the state’s expedited audit program.
Because 60 calendar days from October 11, 2017 falls on a weekend, it is unclear whether the deadline to elect these options will be Monday, December 11, 2017. Further guidance may be issued from the Secretary of State’s office.
Read an October 2017 report [PDF 125 KB] prepared by KPMG LLP
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.