Unclaimed Property Compliance Archives - Page 2 of 2 - PEACC - Property Escheatment And Compliance Consulting

12 Feb 2019

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Unclaimed Property Audit Triggers –

Sticky Post By peaccadmin On February 12, 2019

Unclaimed Property Audit Triggers

Delaware VDA Opportunity Notification Letters

Sticky Post By peaccadmin On November 15, 2018

Based on recent correspondence with the State of Delaware and the Holder community, it has come to PEACC’s attention that Delaware’s Secretary of State has recently mailed opportunity letters to participate in the State’s Voluntary Disclosure Agreement (“VDA”) program. These notices were mailed to hundreds of companies throughout the United States who are incorporated in Delaware. As stated in the State’s recently revised laws and regulations, companies receiving the VDA letter have 60 days to respond. Companies not responding to the letter will be referred to the Delaware Department of Finance for an unclaimed property audit. Historically, the State turns to aggressive third-party, contingency fee paid auditors to perform these audits.

With this new letter notification initiative in mind, it is a best practice for any companies incorporated in Delaware, not fully compliant with the State’s unclaimed property rules and regulations, to keep an eye out for these VDA notices so they do not miss this opportunity to participate in the State’s VDA program. PEACC advises all companies incorporated in Delaware (not just the ones receiving the letter) ensure they are in full compliance with the unclaimed property State laws and requirements as they may again begin to aggressively enforce their reporting requirements through State and State sponsored audits.

PEACC is advising companies to let their mailrooms and other appropriate personnel know to keep an eye out for any correspondence letters from the State of Delaware so this opportunity to report through a VDA does not pass them by. Missing this opportunity will lead to an unclaimed property audit.

For further information about this Delaware VDA letter writing campaign or the State’s VDA program and its benefits, please contact PEACC at 410.303.5510 for a free confidential consultation.

29 Mar 2018

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California Introduces Bill for Voluntary Compliance

Sticky Post By peaccadmin On March 29, 2018

The State of California recently introduced Bill (AB 2773) that, if passed, would create a Holder friendly Voluntary Compliance Program. This Program would allow Holders to report and remit past due property to the State without the threat of interest and penalties being assessed. If the Bill is passed, Holders not fully compliant with California’s unclaimed property regulations would have the opportunity to get compliant with a reduced look-back period and without the threat of interest or penalties being charged for past due property,

It has been almost twenty years (2001) since California last offer a similar amnesty reporting program. This Program was initially offered for one year, but it was so lucrative for the State, they extended it another year through 2002. The State took in millions of dollars as Holders chose to take advantage of it.

As an incentive for Holder compliance, most States currently offer either a formal or informal voluntary compliance program, normally known as a VDA (“Voluntary Disclosure Agreement”).

However, California currently is one State that will automatically assess at 12% per annum interest penalty on all past due property from the date it should have been reported. A Holder may request to appeal this 12% interest penalty, but it must be requested individually after the assessment. However, this request for abatement must be for good cause.

If AB 2773 is passed, it would allow the State to waive interest and penalties for Holders accepted into the Program and participating in good faith. The Program would be open to all Holders who aren’t currently under audit or have been selected for audit by the State or one of their agents. Once accepted into the Program, another benefit is a shortened look-back period of ten previous report years from the date the Holder is accepted into the Program. Currently, audits may go back to the Holder’s inception.

Bill AB 2773 was referred to California’s Judiciary Committee on March 20, 2018. If passed, a Holder would have through January 1, 2024, to enter and participate in this formal VDA amnesty program.

If enacted, this Bill would benefit any Holder conducting business in California, incorporated there, has a large amount of property due to the State or has historically under-reported. The Bill has gained major support from the Holder community and organizations throughout the Country.

PEACC will continue to monitor the progress of AB 2773 and hopefully the passing of it.

15 Nov 2017

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Expediting a Delaware Audit Into a Voluntary Disclosure

Sticky Post By peaccadmin On November 15, 2017

For Holder/Companies currently under a Delaware unclaimed property audit, below is a link to the form required to be completed and submitted in order to convert the audit into a Voluntary Disclosure Agreement (“VDA”):

(Please cut and paste link into your browser)

https://finance.delaware.gov/unprop/Notice%20of%20Intent%20to%20Convert%2010-3-2017.pdf

Please note: there are time constraints for converting a Delaware audit into a VDA.

12 Sep 2016

Sticky Post By peaccadmin Posted in Unclaimed Property Compliance Permalink

Delaware Voluntary Disclosure Agreement

Sticky Post By peaccadmin On September 12, 2016

Delaware Voluntary Disclosure Agreement (VDA) Process: A Step-by-Step Guide

The Delaware Voluntary Disclosure Agreement program offers businesses a smoother path to compliance with unclaimed property laws. This blog outlines the key steps involved:

I. Enrollment

Sign and submit Form VDA-1: This initiates the program and signifies your intent to comply.

II. Information Gathering

Compile details about your company:
- History
- Entities included in the VDA
- Mergers and acquisitions
- Reporting history
- Records availability
- Property types you’ll report (e.g., payroll, accounts payable/receivable, refunds)

III. Scoping Your VDA

Define the scope for each entity:
- Identify property types included
- Assess record availability (trial balances, bank reconciliations, check lists, A/R aging reports)
- Determine the look-back period (ideally to 1996)
- Address lack of records (estimation methods)

IV. Detailed Records Review

Conduct a thorough review of each property type for each entity.
Utilize estimations when records are unavailable.

V. Submitting Findings to Delaware

Present a draft report to the Delaware Department of State.
Be prepared for potential sampling to verify your results.

VI. Settlement and Payment

Upon Delaware’s approval:
- Complete and submit Form VDA-2.
- Make a remittance payment for identified unclaimed property.

VII. Addressing Other States

Once the Delaware VDA is finalized, determine any potential exposure for unclaimed property in other applicable states.

By following these steps, you can navigate the Delaware VDA process efficiently and ensure compliance with unclaimed property regulations.

For further information and questions regarding compliance with these state unclaimed property laws, please contact a professional at PEACC.com at 410.303.5510, or email us at info@peacc.com.