Delaware's NEW Voluntary Disclosure Program for Unclaimed Property: Should You Utilize It?
According to Delaware, the Secretary of State has been authorized by the recent passage of Senate Bill 258 to resolve claims for abandoned property, provided that holders of such property voluntarily disclose information related to the property within the required timeframes.
The new three-year voluntary disclosure agreement (“VDA”) program for holders of unclaimed property is independent of the current VDA program supervised by the State Escheator in the Department of Finance.
A holder participating in the new VDA program with the Secretary of State will be able to fully resolve all claims for any past due unclaimed property by voluntarily disclosing and remitting property related to transaction years 1996 or 1993 to the present, depending on when the holder enters the program and completes its submission.
The Secretary of State will not conduct audits or investigations of holders, outside of resolving claims brought pursuant to the new VDA program. In addition, eligible holders, who have submitted written notice of their intent to participate in the new VDA program by June 30, 2014, will have no exposure to audit by the State Escheator until after July 1, 2015.
For detailed information on the program, please visit DelawareVDA.com.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.