Deadline Looms for Enrollment in Delaware Unclaimed Property Program
(May 6, 2013)
To receive the most favorable treatment under Delaware’s voluntary disclosure agreement (VDA) program, holders of unclaimed property must enroll in the program by June 30, 2013.
Under a Delaware law enacted in July 2012 (see Crowe Tax Alert: “New Delaware Unclaimed Property Voluntary Disclosure Program”), those executing a VDA on or before June 30, 2013, will be subject to a look-back period that begins with transactions occurring in 1996. Those who execute an agreement between July 1, 2013, and June 30, 2014, will be subject to a look-back period that begins with transactions occurring in 1993. Unless the law is changed, holders who don’t sign up by June 2014 could lose the opportunity to enroll in the program at all.
Under the state’s usual approach to audits of unclaimed property, entities formed under Delaware law are subject to audit for periods as far back as 1981. Penalties and interest can double the amounts due under audit.
Following are some of the additional benefits of participating in the Delaware VDA program:
- The program’s approach is considered “business friendly.”
- All penalties and interest are waived.
- The risk of audit for all prior years is eliminated.
The limited-period program is administered by the Secretary of State’s office. More information is available at the program’s website.
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