Ryan Abandoned and Unclaimed Property Alert: Delaware Unclaimed Property Voluntary Disclosure Program Update
DALLAS, April 11, 2014 /PRNewswire/ -- A deadline is quickly approaching for unclaimed property, creating a limited window of time for businesses to take action. As of June 30, 2014, the Delaware Unclaimed Property Voluntary Disclosure Program ("Program") will cease to accept new enrollees, and the state is likely to initiate enforcement efforts on those companies that chose not to participate in this initiative.
The Program was launched to offer a more business-friendly program, enabling companies to efficiently address their past property obligations while avoiding an audit. Operated by the Delaware Department of State, this Program offers amnesty for non-compliant companies at risk for an extensive, multiyear audit.
Any company incorporated in Delaware, or with operating entities/subsidiaries incorporated in Delaware, should strongly consider entering the Program. Optimal participants are companies that meet the criteria and have not been previously audited by the State of Delaware. Businesses that choose not to participate in this initiative are at high risk of audit. In fact, the State of Delaware has invited a number of companies to participate in this Program. Companies that received this request and opted not to join the Program are at substantially higher risk of being selected for audit.
This Program offers a number of advantages to Delaware-incorporated businesses, including:
- Eliminating the risk of a Delaware audit
- Reducing the financial impact and resource strain imposed by an audit
- Mitigating the liability associated with an extensive look-back period and potential penalties and interest assessments
- Avoiding an audit executed by a third-party audit firm with a financial incentive
The Program Administrator strongly recommends that businesses engage the counsel of a professional services firm with expertise in this business area.
Ryan is an award-winning global tax services firm, with the largest indirect tax practice in North America and the seventh largest corporate tax practice in the United States. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 1,600 professionals and associates serves over 9,000 clients in 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at www.ryan.com.
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Mark A. Paolillo
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