Delaware is once again stepping up its enforcement and sending targeted letters to companies inviting them to enroll in the Delaware Voluntary Disclosure Agreement program.
According to the current process, DE can not call an audit without first giving an opportunity for a company to voluntarily enroll in their Voluntary Disclosure Agreement (VDA) Program. Note, very important, these are targeted letters, generally sent to companies showing no report history, lapses in reporting, underreporting, industry profiling, or simply snitching.
The following are the approximate dates in the current calendar that invitations will be sent out for the Delaware SOS VDA Program. These dates are subject to change.
- February 19, 2021
- May 14, 2021
- August 20, 2021
If you receive a letter, typically sent to the CEO or CFO via certified mail, do not ignore it and TAKE ACTION! You have 60 days from the date of the letter to respond appropriately. Do not ignore it, because if you do, shortly following the 60 days, your Company will receive an audit notice from a third-party audit firm to conduct an audit on behalf of DE and likely dozen other states.
Take Action! Reach out to UPCR for answers to your questions:
- Why am I getting this letter?
- Who do I contact internally to determine if the company is in compliance?
- What are my next steps to identify any risk for the Company?
- Where are the Company’s financials kept and maintained?
- How do we quickly calculate any unclaimed liability subject to reporting to warrant enrolling in the program?
Let us help you address these questions and more! You need to act fast and proactively determine your company’s risk for any non-compliance subject to not only this VDA opportunity but a potential future multi-state audit.