01
Preserve the notice and its deadline
Route the correspondence to a clear internal owner, note the response date, and avoid treating a state letter as ordinary mail. Keep the original notice and any related communications together.
ClearLedger response guide
Received an unclaimed property audit notice?
A Delaware or California audit or voluntary-disclosure inquiry can feel urgent. Start by organizing the facts, protecting the response deadline, and choosing a measured next step.
First principle
Do not rush to conclusions. A state notice is a prompt to build a clear administrative record and coordinate the right expertise for the situation.
What an audit notice means.
An unclaimed-property audit notice or voluntary-disclosure inquiry generally asks a holder to address whether it has reportable property and whether historical records support its reporting position. It is not, by itself, a conclusion about liability or an instruction to guess at the facts.
Teams are often directed to review dormant AP balances, uncashed payroll, vendor credits, customer refunds or deposits, and other unreported property. The record, entity structure, owner information, and applicable state rules determine what needs attention.
Response checklist
Do this first.
A disciplined first pass can keep the response anchored in the record while the team decides whether it needs administrative, legal, or tax support.
02
Gather the underlying record
Begin with dormant-liability data, bank reconciliations, AP aging, payroll records, outstanding checks, customer credits, refunds, legal-entity information, and prior filings or outreach records.
03
Map the period and entities at issue
Identify the legal entity, states of operation, property types, and the years referenced in the inquiry. The appropriate record look-back depends on the facts and applicable state rules.
04
Assess the available response path
Where voluntary disclosure is still available, it may be a more structured way to address historical gaps. Eligibility, timing, and the effect of an existing notice are fact-specific, so confirm the current program requirements and involve qualified advisors as needed.
Risk context
Why businesses get audited.
Audits and inquiries can arise when historical reporting, long-dated liabilities, entity complexity, or incomplete records merit closer review. The right lesson is not to predict state action—it is to make the operating record easier to explain.
Read the Delaware and California enforcement contextResponse paths
Voluntary disclosure vs. audit.
These are different paths with different timing and eligibility considerations. The best path depends on the notice, reporting history, and current state-program requirements.
Audit response
Respond to the inquiry you received.
An audit or examination typically begins with a specific request, deadline, and scope. The immediate work is to preserve the record, understand the state’s request, and coordinate a complete and accurate response.
Voluntary disclosure
Address an issue before an audit process begins.
Where a program is available and the holder is eligible, voluntary disclosure can offer a more proactive, lower-friction administrative pathway than an audit. It is not automatic or guaranteed, and state requirements should be confirmed before relying on it.
A structured next step
Bring order to the response before the record gets harder to rebuild.
Start with a readiness review if you need a clear picture of the records and next steps. For missed years or an active state inquiry, choose cleanup and voluntary disclosure support.
Educational information only
This page is for general educational purposes and is not legal or tax advice. An audit or voluntary-disclosure response depends on the relevant facts, records, entity structure, owner information, notice terms, and applicable state law. Confirm current program requirements with the relevant state agency and consult qualified advisors about your specific situation.
Official sources
Confirm the current state program details.
Use the state materials to confirm the current reporting and voluntary-disclosure information. Program terms, deadlines, and eligibility can change.
01Delaware Department of Finance — Unclaimed PropertyOfficial Delaware holder resources and unclaimed-property program information.02Delaware Secretary of State — Unclaimed Property Voluntary Disclosure Agreement ProgramOfficial Delaware voluntary disclosure program information and enrollment resources.03California State Controller’s Office — Report Unclaimed PropertyOfficial California holder-reporting calendar, report stages, and filing resources.