If you've been in the unclaimed property industry for any length of time, you know Delaware has a reputation for being very tough on holders. They usually give no quarter when it comes to compliance issues with holders. I was pleasantly surprised when Delaware extended an olive branch to non-compliant holders. If you have any past due unclaimed property for Delaware, I strongly encourage you to jump on this rare opportunity while you can.
The bill passed July 11, 2012 and sunsets July 1, 2015. You can read it
here.
Holders may enter into a voluntary disclosure agreement with the Delaware Secretary of State. There are some caveats. There are certain deadlines for finalizing the agreement and for making the required payments to the state. Holders who entered a VDA on or before June 30, 2012 are not eligible. Holders who have already received a notice of examination (a letter stating you will be under audit) are not eligible. Review the law carefully to see if you qualify.
This is time sensitive so the earlier you enter into an agreement, the better. As an incentive, Delaware will shorten the reach back period if you meet certain deadlines. The reach back period is how many years back the state can look into your records to find unclaimed funds.
If you would like to limit the reach back period to 1996 and after, enter into a written agreement by June 30, 2013 and make your payment or enter into a payment plan by June 30, 2014.
If you would like to limit the reach back period to 1993 and after, enter into a written agreement between July 1, 2013 and June 30, 2014. Make all payments or enter into a payment plan by June 30, 2015.
No new agreements can be made after June 30, 2014 and no payments will be accepted after June 30, 2015.
Author: Danielle Herring
Product Manager, UPExchange
Labels: UP Announcements
