Delaware S 104: Introduced – Unclaimed Property Audit Practices, VDA’s, IRA’s

Danielle Herring
April 21, 2021

Introduced April 14, 2021 this bill, if enacted, would become effective on August 1, 2021; with certain provisions applying retroactively to any claims, examinations, or litigation pending as of the effective date. This proposed bill covers three areas: audit practices, Voluntary Disclosure Agreements (VDA’s) and Individual Retirement Accounts (IRA’s).

If passed this bill would expand Delaware’s authority to determine the completeness and accuracy of holder reports, including record review from the holder and third-parties unrelated to unclaimed property due and owing to Delaware. It would also eliminate third-party contingent fee arrangements for most industries and replace them with payment on an hourly basis. Expedited examinations procedure is outlined along with a new incentive to participation by providing a significantly reduced interest rate.

This bill also incentivizes VDA’s by potentially waiving or significantly decreasing interest and extends the period for a holder to respond to a VDA invitation. Records obtained in a Delaware VDA or audit may not be used in a joint examination conducted with another state without written consent. 

In relation to IRA’s this bill decreases the dormancy period on IRA’s to three years after the owner’s last indication of interest following the required minimum distribution age, if the holder has no knowledge of an owner’s death.If the holder has knowledge of owner death, the account is presumed abandoned one year following the date specified in the income tax laws. To review DE S 104 in further detail click here.

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Danielle Herring

In her role as compliance manager for unclaimed property reporting, Danielle Herring oversees support of the product, researches changes in state unclaimed property laws so the system is updated to comply with them, and tests changes to the system before they are released. Danielle also completes some report and letter processing for current clients, assists with their direct support, provides customer training, and helps with troubleshooting and questions about using the product. Outside of work, Danielle loves to garden and is a master gardener.
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