Delaware Reporting Verification Letters

The State of Delaware Department of Finance sent out letters to Holders requesting verification of annual unclaimed property reports for property presumed abandoned as of December 31,  2020. These Delaware reporting verification letters are targeted to holders that previously reported unclaimed property to Delaware but did not submit a 2020 report, which was due on March 1, 2021, for all companies except banking and insurance companies (banking and insurance companies have unclaimed property cut-off dates of June 30 and December 31 with reports due on November 10 and December 20, respectively). Make sure those responsible for signing and filing the report as well as management, CCOs, CEOs, and CFOs, watch for this letter.  

While Delaware accepts negative or $0 reports, it does not require negative reporting. If your company has filed an unclaimed property report in the past to Delaware and determined no property is due for the current reporting cycle, you may wish to file a negative report to show continued compliance even though it is not required. It is imperative that companies that receive this letter, or one similar, respond within 30 days. A response is required even if your company does not have unclaimed property to report to Delaware for the Report Year 2020. 

If you receive this letter, or one similar, double check your unclaimed property reporting for Delaware to ensure full compliance, complete and return the letter. This letter also requires a copy of the company’s unclaimed property policies and procedures. It’s important to note that the letter also requires notarization. If you’re unsure about your compliance, the implications of this letter, or need policies and procedures created or updated, reach out to an unclaimed property expert, like Sovos.

This letter also details that failure to respond within 30 days and with the required information may result in state enforcement, such as initiating an audit. Additional details and guidelines around unclaimed property reporting rules and regulations are available on Delaware’s website or in its Holder Handbook.