OUR THOUGHTS ON:

Delaware Extends Unclaimed Property VDA

State and Local Tax

By Jennifer Koehler

Delaware has extended the sunset of the Secretary of State’s voluntary disclosure program by one year to July 1, 2016.  A letter of intent to enter into an unclaimed property voluntary self-disclosure agreement must be submitted by the holder by September 30, 2014. 

Delaware has also changed the following:

  • The penalty for failure to file a Delaware unclaimed property report is the lesser of 5% per month or $100 per day, with the maximum penalty being $5,000.  Previously the penalty was 5% per month with a maximum penalty of 50% of the amount required to be shown on the report; 
  • Interest will no longer be charged on outstanding amounts; and
  • The practice of government departments holding information confidential that has been obtained during the course of examinations, settlements or voluntary self-disclosure has been codified. 

Holders of specified types of unclaimed property are required to report and turn over such property to the state in which the property owner was last known to reside.  In instances where the owner’s location is not known, such reports and remittance of property are generally to be made to the state of incorporation.  In many cases, this is Delaware.  Because unclaimed property rules vary by state, it is best to contact your state and local tax professional with any questions.

© 2014 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

comments