Delaware Federal Judge Draws on Recent Cases to Dismiss Unclaimed Property Challenge

Diann Smith called a Delaware federal judge’s dismissal of a case challenging the state’s unclaimed property audit rules “unfortunate” because it makes taxpayers risk penalties when states apply different rules. The decision “takes away sovereign jurisdiction of the states” Ms. Smith said. “If one state wants to enact an exemption, another state can ignore it with no recourse for the holder. The court allows Delaware to usurp the decisions of other states.”