Now that your fall unclaimed property reporting is complete, your PEACC Team of Advisors would like to announce Delaware is schedule to send out the next round of VDA invitations on November 15, 2024. The State last sent invitation letters out in February 2024.
If your organization receives a VDA (Voluntary Disclosure Agreement) invitation Letter from Delaware and fails to timely respond, you will become eligible for the dreaded, unclaimed property audit. Contact the professionals at PEACC to discuss your options, along with the process, at 410.303.5510.
When performing any unclaimed property self-audits or reviews, please keep two important givens in mind to alleviate troubles down the road:
1) Most companies will under estimate their true unclaimed property exposure if and when audited by the State(s).
2) A State will put the burden of proof on the Holder to prove they’re wrong. A State will presume a Holder is guilty unless they can be proven wrong.
For help in developing and implementing an annual unclaimed property reporting process or any questions regarding this process, please reach out to one of the Professionals at PEACC by calling 410.303.5510 or email us at info@peacc.com
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Unclaimed Property Self-Audits: Two things to always keep in mind January 23rd, 2025peaccadmin
Been given the option to perform a self-audit or review vs a state or state sponsored 3rd-party unclaimed property audit?
Here’s what to expect during your self-audit/review.
– The States allow less time to complete a self-audit/review vs a full fledged State sponsored audit to be completed. – The States expect a thorough review of the company’s books & records for the entire lookback period. Normally 10 years plus the dormancy period. – The State will utilize a State sponsored 3rd-party auditing firm to assist is gathering information and reviewing it. – State report submission is normally done through a State webpage portal in a specific, State approved, format. – If, after adequate testing and reviews are completed, Self-Audits can be completed fairly quick and without too many headaches.
For help with self-audits or any questions regarding this process, please reach out to one of the Professionals at PEACC by calling 410.303.5510 or email us at info@peacc.com
What to Expect during your self-audit January 16th, 2025peaccadmin
Been Assessed for Unclaimed Property Exposure by a State? Here are some key takeaways to be aware of: – Most State assessments for unclaimed property exposure are only estimates because the Holder lacks records to support their findings. – Keeping the right support documention can prove invaluable during an unclaimed property review or audit. – A company’s/Holder’s understanding of what unclaimed property is and the actual finding may be totally different. – Being proactive is always a better approach than being reactive whenever it comes to unclaimed property related issues and determining exposure.
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Unclaimed Property Assessment Key Takeaways January 16th, 2025peaccadmin
Some New Yorkers Could Receive Up to Suprise $250 in Mail! Based on a recently passed law and starting this month, January 2025, New Yorkers could receive up to $250 automatically from the State’s Controller’s Office, states a recent news article from the New York Post. These funds may include funds from unclaimed and old bank accounts, investments, gift cards and insurance checks that were turned over to the States after they weren’t claimed in enough time. State residents do not need to do a thing!
Under the recently passed law, the Controller’s Office will automatically mail out checks to Owners who have property owed to them up to $250. Since most unclaimed property can be between $70 & $100, this will cut down on some of the headaches associated with claiming this property. The State will still verify that this property is rightfully theirs. Please note, the checks will only be mailed to Owners of property up to $250. Owners will still have to submit a claim with the State on any property over $250. Prior to this announcement, Owners had to go through the headache of filing a claim with the State to reclaim all unclaimed property due to them, no matter what the amount. This is a significant benefit for New York residents and Owners of unclaimed property because it cuts down on all the red tape and hoops Owners need to jump through to reclaim this rightful ownership to the property. We can only hope additional States implement this new ruling the State of New York just announced. Although this new ruling is only for property reported to the State of New York as unclaimed from January 2025, going forward. For property reported prior to January ’25, the Owner will still need to file a claim with the State in order to reclaim it. We can only keep our fingers crossed more States adopt this ruling to alleviate the burden, headaches and wait times Owners have experienced when trying to reclaim funds that are rightfully owed to them. So sit tight New Yorkers, funds may be coming your way in the mail!
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NYers may receive “free” $ January 16th, 2025peaccadmin
Consequences for Not Having a Yearly Unclaimed Property Compliance Process in Place. There are harsh implications for Holders who do not have a annual unclaimed property compliance program including:
– For Holders who do not submit annual unclaimed property reports – For Holders who file inconsistent, inaccurate or non-compliant annual reports – Not reporting all property types in reports – Filing annual unclaimed property reports late – Holders run the risk of being audited which could lead to hefty fines/interest rates and penalties
As you can see, identifying, monitoring, reporting and complying with all State unclaimed property reporting laws & requirements are very important functions to have implemented within your organization.
For help in developing and implementing an annual unclaimed property reporting process or any questions regarding this process, please reach out to one of the Professionals at PEACC by calling 410.303.5510 or email us at info@peacc.com
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Consequences for Not Having a Unclaimed Property Program January 16th, 2025peaccadmin
Reason Why Your Unclaimed Property Report was Rejected –
There a numerous reasons why a State may reject your annual unclaimed property report, including non-compliance –
Certain States require specific information be included on their State unclaimed property reports, including that they be in the appropriate format in order that they are accepted. – California and Florida will reject reports if payroll property is lacking the Owner’s social security number. – Tennessee requires that the NAICS be included on all uploaded unclaimed reports – Tennessee, Washington, District of Columbia and Delaware are just a few of the State entities that require all state reports be uploaded to their State website portal – When reporting property type Mineral Proceeds, certain States, including, Texas, Arkansas and Oklahoma require the well name, well number and well location be included on all State reports when reporting Mineral Royalties or the report may be rejected. – Alabama, Nevada and Tennessee are a few of the States, where if the remittance is not received electronically, the report will be rejected and returned to the Holder. – Spelling and not listing the property clearly on the State report may cause rejections and for the report to be returned back to the Holder. – Reports not received by the States deadline (in most cases before November 1 or May 1 each year) may also be rejected and returned to the Holder. As you can see, there are numerous reasons why a State report may be rejected. Protect your company while saving time and money by contacting PEACC now to determine how not to have your report rejected. Please call 410.303.5510 or email info@peacc.com. We’ll be glad to assist!
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Reason Why Your Unclaimed Property Report was Rejected January 14th, 2025peaccadmin
~ To reduce your unclaimed property liability and exposure ~ Obtain and maintain compliance with all State unclaimed property laws and regulations ~ Protect the Holder’s bottom line ~ Reunite Owner with their unclained assets; State maintains custody of property until Owner is found and reunited with lost property ~ Owners only have one centralized place to look for lost property
For help in developing and implementing an unclaimed property processes or any questions regarding this process, please reach out to one of the Professionals at PEACC by calling 410.303.5510 or email us at info@peacc.com
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What Makes Up Your Yearly Unclaimed Property Process? January 14th, 2025peaccadmin
What to know about the Delaware Unclaimed Property Notices being mailed out – What to Expect.
The State of Delaware continues to mail out Unclaimed Property Notices, inviting Holders to participate in the State’s Voluntary Disclosure Agreement (“VDA”). The following is how to address it if received: Please be aware there is a 90 day turn around for the response. Holders/companies who do not respond within 90 days will be referred to the Delaware State Escheator’s office for an unclaimed property audit.
The State’s expectations are that these Notices not only cover the entity who receives it, but also all subsidiaries and parent company involved with the entities.
Any reviews that do take place as a result of these mailings will involve a 15 year lookback period.
Companies without good accurate, records for any year(s) in the 15 year lookback period can expect estimations to be used for the years good records are not available.
Organizations incorporated in Delaware, or any of their subsidiaries incorporated there, will be the main target of the VDA Notices. However, any entities with foreign activities may also be targets of these VDA Notices..
PEACC’s best advice if you do receive one of these VDA Notices in the mail is to respond right away, providing accurate responses. For further insite on how to respond and what to expect, please contact one of our professionals at 410.303.5510 or email at info@peacc.com. We’re here to help!
Delaware Unclaimed Property (VDA) Notices January 23rd, 2025peaccadmin
All States have intangible unclaimed property reporting laws along with DC, Guam, Puerto Rico and the Virgin Islands. Canada also has robust unclaimed property reporting requirements. But, in this case, we’re talking only of the U S. reporting requirements and not Canada.
All States pursue unclaimed property as a source of State revenue and so the true Owner of this lost property only has one place to look to reclaim Ownership.
Each State has their own unique laws that dictates how the property is managed until reported. These laws are basically the same amongst the States. But some States have laws that only benefit them. However, the reporting requirements are basically the same in all the States, yet slightly different.
The statutorily set dormancy period may be 1 through 5 years in most cases depending on the property type, with Traveler’s Checks having a 15 year holding/dormancy period.
The main purpose of these State laws are to protect the property until the rightful Owner can be found. Until the Owner can be found, the States may use this property for “public good” such as road maintenance, library construction/remodeling, school funding, etc.
Property that remains unclaimed by the rightful Owner must be turned over to the appropriate State after it reaches its dormancy period. But the rightful Owner may always lay claim to it. That State may be the State where the Owner last resided or the Holder/company/entities State of Incorporation depending on whether the Owner’s last known address is unknown, or if the property is foreign.
As you can see, these laws and requirements can get complicated and confusing. For help with your unclaimed property reporting or any questions, please reach out to a professional at PEACC by calling 410.303.5510 or email us at info@peacc.com We’re here to help!
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The ABC’s of Unclaimed Property January 14th, 2025peaccadmin
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