Article

Fall 2025 unclaimed property update

Sept. 11, 2025 · Authored by Cathleen Bucholtz, Matthew Chenowth

The fall 2025 unclaimed property compliance season has already begun as companies send out owner due diligence notices and begin to gather their records for the reports due at the end of October. However, companies should be aware of several updates that may impact their current and future reporting obligations:

Delaware

Illicit property reporting guidelines

Although Delaware unclaimed property reports are due in spring, companies should be aware that the Delaware Office of Unclaimed Property recently published guidelines instructing companies on how to report illicit property when a holder has a reasonable belief that an owner is using a false identity. Specifically, the guidelines apply when a company holding unclaimed property (holder) reasonably believes that the owner provided a false name, identity and/or address and has a reasonable belief that fraud or illegal activity concerning the property has occurred.

Prior to reporting illicit property, holders should first contact the appropriate law enforcement agency if any potential for fraud or illegal activity is suspected and turn the property over to law enforcement, or, if appropriate, attempt to return the illicit property to the source, according to the new guidelines.

The policy includes additional criteria and details, including rules regarding owner information and certain transfers of property, a requirement to report illicit property separately, illicit property reporting procedures and consequences of noncompliance. Companies can learn more about the illicit reporting guidelines here.

VDA invitations

The Delaware Secretary of State (SOS) recently posted a notice on its website stating that it began sending a new round of invitations for holders to participate in the Delaware SOS Voluntary Disclosure Agreement (VDA) Program on Aug. 15, 2025. Any holder who received an Aug. 15, 2025 VDA invitation will be able to join the SOS VDA program through Nov. 13, 2025.

The Office of Unclaimed Property (OUP) will send letters the week of Oct. 14, 2025, advising any holder who received the August 2025 invitation but has not yet enrolled in the SOS VDA Program that the OUP will not send Notices of Examination until the week of Nov. 13, 2025. Holders who intend to enroll in the VDA program should do so by sending in a completed VDA-1 as soon as possible and during this additional time period. By Nov. 17, 2025, OUP will begin to send a Notice of Examination to any holder who received a VDA invitation but has not enrolled in the VDA program.

Indiana

Self-review notices

The Indiana Attorney General’s Unclaimed Property Division recently sent notices to companies requesting they perform a self-directed compliance review and report any past due property within 120 days of receiving the notice. The compliance review includes examining a Holder’s records across all areas that may generate unclaimed property, including accounts receivable, accounts payable, payroll and others. Failure to respond to the notice may give rise to an audit, so companies should be on the lookout for this and any other state unclaimed property notices, in order to respond by the state’s deadline.

Washington

Filing negative reports

Companies with unclaimed property filing histories in the State of Washington with no property to report in 2025 should be aware that the state has been reaching out to companies that fail to file negative or zero due reports. Technically, negative reports are not required to be filed in Washington unless the state specifically requests a company to do so. However, the Washington Department of Revenue does not send a “Request for Negative Report” email. Instead, numerous companies are receiving notices from Washington stating:

“We Have Not Received Your 2024 Unclaimed Property Report. Please review the following accounts or any Holder account you represent that may owe funds to the state of Washington”

Many companies with unclaimed property filing histories in State of Washington with no property to report are taking the preemptive step of filing a negative report in 2025. While Washington does not require negatives unless requested, some companies are doing so to avoid receiving additional follow-up requests by the State.

Questions?

To learn more about these unclaimed property updates that may impact your company, or any other unclaimed property questions, reach out to a member of the Baker Tilly unclaimed property management team for guidance and assistance.

The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.