On February 16, 2022, California introduced AB 2280 allowing the California Controller to establish a California Voluntary Compliance Program (VDA Program).
Interest due on late reported property will be waived for holders completing the program. The VDA program will be available to any holder who has failed to timely report property. However, a holder is ineligible to participate in the program if any of the following apply:
- The holder has received a notice of audit.
- The holder is the subject of a civil or criminal prosecution involving unclaimed property compliance.
- The Controller has notified the holder of an interest assessment within the previous five years and the interest assessment remains unpaid at the time of the holder’s request to enroll.
- The Controller has waived interest assessed against the holder within the previous five years.
To take advantage of the interest waiver, a holder enrolled in the VDA Program must:
- Enroll and participate in an unclaimed property educational training program provided by the Controller within three months after being accepted into the VDA Program.
- Review their books and records for at least the previous 10 years, starting from June 30 or the fiscal yearend preceding the date accepted into the VDA Program.
- Send due diligence no less than 30 days prior to submitting the report required under the VDA Program.
- File a notice report to the Controller within six months after being accepted into the program.
- File a final report and remit all escheated property specified in the report, no sooner than seven months and no later than seven months and 15 days after the Controller received the notice report. Failure to do so may result in the Controller reinstating interest.
The VDA Program is contingent upon an appropriation by the Legislature in the annual Budget Act to fund the program.