There is much to consider in 2015 with respect to unclaimed
property. Here are some of the highlights and action items to focus
on as you move into the new year:
Audits and VDAs
Delaware Interest and Penalty Changes In 2014, the
Delaware legislature removed portions of the unclaimed property law
that levied up to 125% penalties on unclaimed property
liability.1 In doing so, the legislature changed the
landscape dramatically. Coupled with the state's estimation
methodology, the interest and penalty provisions generated high
risk for companies—risk that may have led to companies
agreeing to otherwise unfavorable settlements.
Now the interest and penalties are capped at $5,000,2
and the state's estimation methodology is under review in
litigation. For that reason, holders should reconsider their audit
and VDA strategy in light of the reduced risk of interest,
penalties, and audit liability.
