The dismissal of the Marathon/Speedway case leaves many questions unanswered – including issues which could provide important guidance to Delaware and to holders with regard to audit practices and more specifically with regard to gift card liability.
Unclaimed Property Audit (38 articles)
The Delaware Secretary of State issued a statement regarding the impact of the federal district court’s decision in the Temple Inland case on the VDA program his office administers. Bullock acknowledged that the decision was “critical of several specific actions taken by the State Escheator during the course of that audit,” but indicated that the case is “limited to the specific facts and circumstances of the unclaimed property audit at issue in the case.”
Office Depot and NACCS allege that Delaware’s initial document request (“IDR”) was overly broad and included irrelevant information; particularly information pertaining to purported unclaimed gift cards that may be due or was reported to states other than Delaware.
While seemingly just another Tuesday, the Federal District Court for Delaware determined that Delaware’s audit estimation method and other practices relating to the Temple-Inland examination violated the due process clause of the Fourteenth amendment of the United States Constitution. The decision rendered is a critical one for the unclaimed property holder community.
Keane has provided the Top 10 reasons why holders should enroll in the Delaware Unclaimed Property VDA Program. While this program has already seen a tremendous response rate, many companies have still not yet enrolled and risk the likelihood of facing an audit from the Delaware State Escheator.