Delaware Proposing New Look Back Periods for Unclaimed Property Audits

For a limited time, look back periods for unclaimed property audits in Delaware may be shorter, should recently proposed regulations become finalized. Recently, the Delaware Department of Finance proposed new regulations that would limit the look back period for purposes of an unclaimed property audit. The proposed regulations provide that, in order to encourage compliance, the following starting periods for examinations will be observed:

For Holders currently under audit, or who become the subject of an audit before the effective date of the new regulation, auditors will review records dating back to January 1, 1986, provided that the examination is completed by June 30, 2015.

For Holders who become the subject of an audit on or after the effective date of this new regulation, and for all other holders whose examinations are not completed by the close of business on June 30, 2015, the State Escheator will continue his existing policy of examining records created on or after January 1, 1981 to determine compliance.

This proposal comes on the heels of the introduction of Delaware SB 258, which seeks to establish a new VDA program designed to encourage holders to come into compliance without fear of an unclaimed property audit.

It appears that this proposed regulation is intended to clear up questions that have arisen about the effect of DE 258 upon holders currently under audit. Comments to the proposed regulation are invited and must be submitted to the Department of Finance by July 31, 2012.

We will continue to monitor the progress of both the look back period regulation and DE 258 here on our blog.

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