Delaware - Unclaimed property “voluntary disclosure” program is extended 

July 2:  In Delaware, an unclaimed property “voluntary disclosure agreement” (VDA) program, that was originally established in 2012, has been extended.

Originally, the deadline for applying to participate in the VDA program was June 30, 2014. Legislation (Senate Bill 228) enacted June 30, 2014, provides additional time under the program by:

  • Extending the deadline to enter into the VDA program to September 30, 2014
  • Extending the sunset date of the program from July 1, 2015, to July 1, 2016

Companies that have received an audit notice from the Delaware State Escheator, however, cannot participate in the VDA program.

Penalty and interest provisions

The legislation also revises the penalty and interest provisions as applied to holders of Delaware unclaimed property that fail to remit property in a timely manner.

Previously, holders of unclaimed property that fail to file an unclaimed property report are subject to a penalty equal to 5% per month of the amount required to be shown on the report. The maximum penalty cannot exceed 50% in the aggregate.

Under the new legislation (Senate Bill 228):

  • The revised penalty for failing to file an unclaimed property report is the lower of 5% per month or $100 per day.
  • The maximum penalty that can be imposed is 50% of the amount required to be shown on the report—not to exceed $5,000.
  • The assessment of interest on the amount of a holder’s outstanding unreported unclaimed property is repealed (whereas previously, interest charges could equal up to 50% of the amount required to be reported).

Senate Bill 228 does not indicate an effective date for the revised penalty and interest provisions.


In addition to expanding the timeframe for participating in Delaware’s unclaimed property VDA program, Senate Bill 228 codifies the state’s long-standing practice of treating financial information obtained during unclaimed property examinations, settlements, and VDAs as confidential.

Task force

The Delaware Legislature also passed a concurrent resolution to create an Unclaimed Property Task Force to study and make recommendations for improving fairness, as well as compliance, in Delaware’s unclaimed property program. The task force is expected to complete its report by November 1, 2014.

KPMG observation

Companies currently or previously incorporated in Delaware, or with Delaware-incorporated subsidiaries, need to be aware of the recent changes to the Delaware VDA program and of the potential consequences of failing to make a timely request for participation in the VDA program.

For more information, contact a KPMG State and Local Tax professional:

Dennis Prestia

212 872-6891

Angela Gholson

212 872 7910

Marc Grossman

404 222 3508

Samantha Petersen


Nina Renda


Chris Sray


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