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Delaware addresses Temple-Inland’s effect on VDA program

Posted By Administration, Tuesday, September 6, 2016

In response to the recent Temple-Inland opinion and subsequent settlement, Delaware Secretary of State Jeffrey Bullock issued a two-page statement, addressing their effect on the state’s voluntary disclosure agreement (VDA) program.

 

Highlights include:

  • Beginning immediately, VDAs will limit their look-back period to 10 years plus dormancy from the date a holder enrolled.
  • The secretary of state and Department of Finance will propose changes to the state’s unclaimed property laws, upon the Delaware General Assembly’s January return. Proposed changes will address a record revision provision for unclaimed property reports tied to the current statute of limitations and, possibly, a negative reporting requirement. 

Bullock’s statement also addresses the use of estimation:

“As outlined in our Implementing Guidelines, we expect holders to ‘reasonably estimate’ liabilities for periods in which the holder’s records are unavailable or insufficient to prepare a report of presumed past due unclaimed property liability. There is no estimation involved for non-Delaware domiciled entities, and all estimated unclaimed property for the period a holder determines it does not have available records would be reportable to the holder’s state of incorporation or formation. This rule is a bright line between what is owed to Delaware and what is owed to any other state to ensure that a holder does not pay twice for the same unclaimed property.”

 

UPPO will continue to monitor and report on the effects of the Temple-Inland decision. 

Tags:  audits  Delaware  unclaimed property  VDA 

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