Delaware Adopts New Unclaimed Property Audit Regulations, Starting 60 Day Audit Conversion Clock for Some Holders
On October 1, 2017, the Delaware Department of Finance issued long-awaited unclaimed property regulations , effective October 11. The new regulations continue the overhaul of the State's unclaimed property program and provide numerous and detailed instructions to both holders and auditors relating to unclaimed property audits. The regulations specify, among other things, the State's process for initiating and audit, the process of information requests and inquiries by the auditors, and specific guidelines on the use of estimation. The guidelines also address a number of substantive issues of interest in the normal reporting process, such as: a specification of records to be maintained by the holder in the ordinary course of business; details on calculating the "maximum cost to the issuer" associated with gift-card or stored value instrument that must be escheated to the state; specifications concerning what activities do, or do not, constitute "owner acti