With projections of $514 million to be collected in 2014, Delaware plays an important role in unclaimed property compliance and reporting. In fact, it is the third largest revenue source for the state.
More than 800,000 companies are incorporated in Delaware, which translates into a significant amount of unclaimed property audits that could occur. The state also has a 1981 lookback for audits, which means that the state can audit transactions dating back more than 30 years. With most companies keeping records for only seven years on average, this can create a tremendous challenge, and significantly impact the bottom-line.
Fortunately, there are ways to prevent audits through annual compliance, Voluntary Disclosure Agreements (VDA) and the new Delaware Voluntary Disclosure Program, which expires on June 30th.
These are some of the key insights from Trish Hopper, Principal of the SC&H Unclaimed Property Services Practice, in a recent podcast, where she provides more insights into the “Delaware Factor” when it comes to unclaimed property.
To learn more about SC&H’s Unclaimed Property Services, click here.