Delaware unclaimed property enforcement continues in fiscal year 2025

Executive summary

Recently, the Delaware Department of Finance, Office of Unclaimed Property has mailed another round of ‘Verified Report’ notices under its expanded section 1170 compliance program enforcement authority amended in 2022. The notices were distributed beginning in mid-August and request that holders of unclaimed property verify under sworn notary the completeness and accuracy of their 2023 unclaimed property report.

Verified Report notices continue

Recipients must respond to the state or its designated third-party administrator within 30 days from the date of the notice to acknowledge receipt. The letters may be addressed to the attention of the CFO, Controller, Tax VP or others presumed by the state to be responsible for unclaimed property compliance and could be sent to multiple contacts.

To complete the Verified Report process, holders are requested to return:

1. Verified Report for Report Year 2023
2. A List of Legal Entities included in the Verified Report for Report Year 2023
3. A response regarding whether the company has written unclaimed property compliance policies and procedures in place

The current letters emphasize new language that the Verification Report process be inclusive of all property presumed abandoned as of the end of the reporting period with consideration for property reported on behalf of the holder by a transfer agent or other third party, such as equity related property. Previous year’s notices did not include such language.

Failure to respond to the notice may result in further enforcement action, up to and including issuance of a Notice of Examination, i.e., an unclaimed property audit. Additionally, holders should consider reviewing any inhouse unclaimed property policies and procedures and/or to develop or enhance written procedures as Delaware continues its various enforcement efforts.

For more information on unclaimed property, please see RSM’s abandoned and unclaimed property services or reach out to your unclaimed property professional with questions about the state’s evolving enforcement mechanisms.