The Delaware Escheator’s chief enforcement tool for companies that don’t comply with Delaware’s Unclaimed Property reporting requirements are “invitation letters.” These letters invite a non-filing company to participate in the Unclaimed Property Voluntary Disclosure Program.
Despite the name, these letters are not an invitation at all. Rather, the letter is sent to a company that has been identified by the Escheator as a non-filer. Do not ignore this letter. If it’s ignored after 60 days, the company is immediately selected for an unclaimed property examination. The examination is conducted by one of Delaware’s third-party vendors (paid on commission). These examinations can last 2-3 years and can be very burdensome. And as the vendors are paid on commission, they are incentivized to find liability. Notably, at a recent conference in Philadelphia, the Escheator stressed that the automatic examination policy will be strictly enforced if the invitation letter is ignored.