Prior to a full-fledged unclaimed property audit, a state may decide to perform a basic review of
a holder to see if it may be cost effective to spend the money and resources on a complete audit
of a holder. State funding is low so many states are turning to holder reviews prior to an audit.
Most of these state reviews can be done over the telephone or through a letter, minimizing the
expenses to the state.
Some the areas a state will ask the holder/company for information on, prior to conducting a
possible unclaimed property audit are:
1) The holder’s written unclaimed property policies & procedures.
2) The unclaimed property reporting/filing history for all entities including acquisitions and
divestitures. (Note: each separate entity will have its own EIN)
3) The holder’s De Minimus policies. All intangible property, no matter what the dollar
amount, is required to be reported in most states.
4) The property types a state would be expecting to see on the holder types report.
5) How the holder handles outstanding checks on closed bank accounts.
As you can see, investigating any of the five areas above, in a quick letter from the state or
during a telephone call may justify a state unclaimed property audit. This is why it makes it best
to educate all employees in your accounting, treasury operations or the department handling
your unclaimed property reporting obligations.
For further information on surviving a state review or, worse yet, the dreaded unclaimed property
audit, contact a professional at PEACC today at 410.303.5510 or email info@peacc.com. We
will be glad to help.
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THE BENEFITS OF HAVING AN EFFECTIVE UNCLAIMED PROPERTY COMPLIANCE DEPARTMENT WITHIN YOUR FIRM
Establishing an effective unclaimed property compliance reporting division within your firm is really a no-brainer.
Is Unclaimed Property Legit?
Is Unclaimed Property Legit? Visit PEACC.com if your company needs assistance with an audit, unclaimed property reporting or process controls. PEACC.com has it all.
TYPES OF UNCLAIMED PROPERTY AUDITS
The states have gotten very creative when it comes to the selection process of unclaimed property audits.
ILLINOIS STEPPING UP ENFORCEMENT EFFORTS
Most companies in Illinois are required to file an unclaimed property report with the state, even if they have no property to report, also known as a “negative report”. If you receive one of these enforcement letters from the state of Illinois or any state jurisdiction, please contact the professionals at PEACC at 410.303.5510, to discuss how to respond and how to proceed.
Unclaimed Property Compliance – CALL NOW TO REDUCE YOUR FEES
After spending months or even years bringing your company into compliance with all the various State unclaimed property/escheatment laws and regulations, all while spending tens or even hundreds of thousands of dollars, now it the time to review your fees and SAVE.
If you are incurring compliance fees for a department that does not even make your company any money, why continue paying large amounts yearly?
There are alternatives available starting with PEACC.com with over 25 years of experience assisting holders with their unclaimed property compliance.
Times are tough, do your company a favor, contact PEACC 410.303.5510 or info@peacc.com to hear how PEACC may be able to lower your ongoing compliance bills going forward.
Stop paying for high priced Holder Advocates and start paying for unclaimed property compliance experience!
Do yourself and your company a favor, call now and hear how PEACC can help in lowering your fees in your yearly compliance efforts.
It may be worth it!
What have you got to lose?
State Unclaimed Property Audit Letter
“Please forward the State your company’s written unclaimed property policies & procedures for reporting your property….”
Does the above phrase make you shiver, squirm?
Unfortunately, if your company is ever selected for the dreaded unclaimed property audit, prior to commencement, the first area of audit will be the review of the company’s unclaimed property policies and procedures.
This audit request is used to determine if the company is fulfilling their obligations of turning over their unclaimed property to the appropriate State and doing it in compliance with each State’s laws and reporting regulations.
If the Holder has formal unclaimed property policies and procedures, great! You’re one step ahead of most companies.
You will most likely still be audited for your unclaimed property compliance, but the State or third-party auditing firm may not look as intensely at companies who do NOT have formal written policies and procedures in place.
If you do NOT have formal written policies and procedures in place within your organization or what you have can use a review or update(s), let the Professionals at PEACC assist with the development or revision of your unclaimed property policies and procedures.
Please contact one of the professionals today at PEACC at 410.303.5510, to hear how we can develop customize unclaimed property policies & procedures or review your current policies and procedures to ensure you are compliant with your State reporting obligations.
Act now before the States come calling!
What Constitutes Intangible Unclaimed Property Reportable Under the Law?
Generally intangible personal property for which there has been no owner generated activity for a specified period of time called “dormancy period” or “holding period”, is considered dormant or unclaimed.
Examples of intangible unclaimed property include:
-Uncashed payroll or commission checks
-Uncashed accounts payable/vendor checks
-Accounts receivable credit balances
-Gift certificates/gift cards
-Customer merchandise credits, layaways, deposits, refunds or rebates
-Overpayments/unidentified remittances
-Suspense accounts -Unused/outstanding benefits (non-ERISA)
-Goods received but not invoiced
-Miscellaneous income/bad debt expense accounts
Unclaimed Property Fines & Penalties for Non-Compliance
A Holder (Company) can be assessed Fines and/or Interest Penalties for Not Complying with State Unclaimed Property Laws.
Unclaimed Property – The “Dirty Dozen”
Ask yourself the following twelve questions to determine if your company is a candidate for the dreaded “Unclaimed Property Audit” by either a state or state sponsored (third-party) unclaimed property auditor