Weekly BNA Insights: Unclaimed Property Voluntary Disclosure Agreements in Seven Key States


 

From the July 1, 2016 issue of the Weekly State Tax Report:

 

Voluntary Disclosure Agreement programs, programs through which a holder can report on a voluntary basis its overdue unclaimed property, are commonly offered by states to encourage holders to come into compliance with their unclaimed property reporting obligations.

 

Although their specific terms vary, VDA programs generally enable companies to achieve compliance with their unclaimed property reporting obligations while avoiding the imposition of some or all of the interest and penalties that might apply in an audit. In addition, holders participating in a VDA program typically enjoy more abbreviated look-back periods than those that apply in the audit context, which may significantly reduce the holder's liability.

 

Michael Houghton and Donna L. Culver from Morris, Nichols, Arsht & Tunnell LLP and Mark A. Paolillo and Susan Han from Ryan Abandoned and Unclaimed Property discuss the details of VDA programs in California, Delaware, Florida, Illinois, Michigan, New York and Texas in this week’s BNA Insights article, available here (subscription required). Or sign up for a free trial to the Weekly State Tax Report.

 

Compiled by Lauren Colandreo