aging criteria, which can drastically impact the size of review populations. Holders that confirm or clean up compliance via the DE SOS VDA process are also afforded an opportunity to do so without the imposition of penalties and interest, as well as the benefit of driving their own review process (as opposed to the deadlines of a third-party auditor). However, it should be noted that under both the VDA program and an audit, Delaware utilizes a 10-year lookback period, plus the 5-year dormancy period for most property types, thereby meaning the review can entail up to 15 years of “lookback”. 3 Since many companies are unable to produce records going back through the complete lookback period, Delaware law requires the use of an estimation to account for years where complete and researchable records may not be available. Considering the 90-day response deadline for VDA invitation letters sent in July, businesses have until mid-October to respond with their enrollment in the program before they may be considered for audit. However, if a business receives a VDA invitation letter, it should consider enrollment as soon as possible in order to avoid the risk of an audit and to evaluate all methods for confirming compliance.
of the changes pertain to the Delaware State Escheator’s (“Escheator”) authority to require a holder to file a“verified report” or to undergo a “compliance review.” 4 Essentially, the legislation eliminated the requirement that the Escheator have“reason to believe” that the business has filed a report that is inaccurate, incomplete, or false or that the business has filed a report at all in order for the Escheator to require a verified report or that the business undergo a compliance review. 5 Further, the enactment of SB 281 now permits the Escheator to initiate an audit without a prior VDA invitation from the Secretary of State if the State Escheator determines that the holder has not completed or responded to a verified report or compliance review.
Shortening of West Virginia Dormancy Periods
West Virginia House Bill 4511 was signed into law by the West Virginia Governor and became effective on June 10, 2022. The legislation made several changes to the unclaimed property law, including reducing certain dormancy periods. More specifically, the provision of West Virginia’s unclaimed property statute addressing mineral interest property was decreased from five years to three years. 6 Those responsible for unclaimed property reporting should be mindful that the shortened dormancy periods apply to Fall 2022 West Virginia unclaimed property reporting and should adjust their review, reporting and remittance to reflect these changes. ______ If you have any questions related to these updates or escheat and unclaimed property topics in general, please do not hesitate to contact Will King, Karen Anderson, or Quin Moore at KPMG. __________________ 3 Del. Code Ann. tit. 12, § 1145 (a) and 2.18.1 Code Del. Regs. 104-2.0 4 Del. Code Ann. tit. 12, § 1170 (a) and (b) 5 Del. Code Ann. tit. 12, § 1172 (d)(4) 6 W. Va. Code Ann. § 36-8-2 (18)
Changes to the Delaware Compliance Review Process
On June 30, 2022, Delaware Senate Bill 281 became effective. In addition to clarifying certain provisions of the state’s unclaimed property law, the bill expands the authority of the state relating to enforcement of the law. More specifically, some EX T EX Division Order Services, LLC 4865 Ward Road, Suite 200 Wheat Ridge, CO 80033 303-463-8799 303-463-8808 extexllc.com Fax Division Orders, Revenue Distribution, 1099’s Dennis Pade Boyd Sanstra Chris Pennels President Vice President Vice President
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N at i onal A ssociation of D i v i s i on O rder A nalys t s
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