New Delaware Unclaimed Property Voluntary Disclosure Program
(July 16, 2012)
A new Delaware unclaimed property voluntary disclosure program passed the House and Senate and is expected to be signed by Governor Jack Markell. Senate Bill 258 provides shortened look-back periods and gives the Delaware Secretary of State’s office the authority to oversee the program.
Under Delaware’s normal unclaimed property audit procedures, entities formed under Delaware law that are holders of unclaimed property are subject to an audit look-back period that begins the date of incorporation or 1981, whichever is shorter. Under the new law, holders of unclaimed property that execute a voluntary disclosure agreement on or before June 30, 2013, will be subject to a look-back period that begins with transactions occurring in 1996. Those that 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. As a result, the look-back period can be reduced by 15 and 12-years compared to current audit procedures. The program sunsets on June 30, 2015.
The Secretary of State – and not the Division of Revenue – will have full authority to settle voluntary disclosure agreements under the program. The voluntary disclosure program is not open to holders of unclaimed property currently under audit, but the shortened look-back period is available to holders that entered into a voluntary disclosure agreement with the state on or before June 30, 2012.
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