The Four Phases of the Unclaimed Property Audit Process include:
PHASE I ~ Entity & property types scoping – Public information review/10k – Tax Return review – Analysis of general ledgers & Review of all legal entities
PHASE II ~ Quantification of Any Potential Unclaimed Property – Bank Accounts detail (aged trial balances review) – Transaction level detail (aged outstanding check listings, Accounts Receivables credit write-offs, etc.)
PHASE III ~ Research Analysis, Remediation & Due Diligence Adjustments – Individual Property type & Entity exposure provided to Holder. – Research, Remediation and due diligence results included in final findings.
PHASE IV ~ Unclaimed Property agreed upon final report and remittance sent in to State.
How States are increasing enforcement and compliance with the State Unclaimed Property laws and regulations.
1) Mailing out of Compliance Reminder Notification letters. – Reminding Holders who do business in their State of their State reporting obligations – Mailing out Reminder letters of their reporting deadlines/due dates.
2) Mailing out Self-Audit or Voluntary Disclosure Agreement (“VDA”) Invitation notices. – Prior to initiating an unclaimed property audit, the State will mail the Holder an invitation to enter into a self audit or VDA program.
3) More States are establishing Voluntary Disclosure Programs (VDP’s) – Prior to starting an Audit, States will invite the Holder to Voluntary participate in a Self-Audit program or review.
4) Establishment of State Voluntary Disclosure Programs/Agreements – Many States have developed Voluntary Disclosure Programs for Holders as an incentive to come into compliance with State laws without the threat of interest or penalties.
5) The Dreaded State Unclaimed Property Audit – A State may use State employees to conduct Unclaimed Property Audits on the State’s behalf. – Most States will use a third-party auditing firm, compensated on a agreed upon contingency fee. Although this contingency fee arrangement is currently frowned upon within the industry.
For further information regarding reports or unclaimed property compliance issues, please contact the professionals at PEACC by calling 410.303.5510 or email us at info@peacc.com
Call PEACC for Compliance 410.303.5510
How States are increasing enforcement and compliance with the State Unclaimed Property laws and regulations January 23rd, 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
Call PEACC for Compliance
What Makes Up Your Yearly Unclaimed Property Process? January 14th, 2025peaccadmin
Is Your Unclaimed Property In-house Program Good & Compliant? What makes a good Unclaimed Property Program successful and good?
Is your program one of them? It is if it: – Reduces any UP exposure to the various States; – It is compliant with all of the State reporting laws, regulations and requirements; – Allows you to keep relationships with all account Owners over the years; – It reunites lost/unclaimed funds with its true & rightful Owner(s); – It reduces the risks related to non-compliance, including: • Possible fines & interest penalties • UP audits and reviews; – All employees understand UP & know where to turn with questions.
Unclaimed Property (UP) In-house Program January 9th, 2025peaccadmin
With all state jurisdictions having unclaimed property reporting laws & requirements and them being aggressively enforced through fines and interest penalties, you hear the question a lot, “What is unclaimed property?” Is it abandoned cars/vehicles? Abandoned land or livestock? What is it? Well, it can be, but in this case it is unclaimed intangible property (with the exception of Safe Deposit Box contents). Considering the unclaimed property world, most unclaimed property involves the following types of intangible properties (but these are just examples and not all inclusive):
– EXAMPLES of UNCLAIMED PROPERTY – – Unclaimed Vendor/AP checks – Unclaimed payroll checks or direct deposits gone wrong – Customer overpayments – Unapplied cash accounts – Aged Accounts Receivable credit balances – Most Refunds due – Unredeemed gift card/certificate balances – Unclaimed bank accounts (checking, savings, retirement, CD’s) – Life insurance proceeds due – Uncashed benefit checks – Utility deposits – Lost shareholders or uncashed dividend checks – Safe deposit box contents
Again, the above list are just examples of unclaimed intangible property and not meant to be all inclusive. Most companies/Holders are going to want to a look at their Accounts Payable, Payroll and Accounts Receivable areas, depending on the type of holder they are (corporation, bank or financial institution, life or non-life insurance company, etc.)
To talk further about all the unclaimed property reporting requirements and what your obligations are, and how to navigate through them, please contact the professionals at PEACC for a no obligation consultation at 410.303.5510.
WHAT IS UNCLAIMED PROPERTY? January 9th, 2025peaccadmin
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Have you ever forgotten about an old gift card or a check tucked away in a drawer? Businesses deal with similar situations all the time. Unclaimed property refers to intangible assets – things like checks, credits, or refunds – that haven’t seen activity from the rightful owner for a set period called the “dormancy period.” After this time, the property becomes 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
Dormancy periods typically range from 3 to 5 years, but this can vary depending on the type of property. For instance, some states might have shorter periods for perishable items like gift certificates.
There are some general ranges to keep in mind:
Typical dormancy periods: Commonly range from 3 to 5 years for things like bank accounts, checks, and credit balances.
Some exceptions: Certain property types might have longer or shorter dormancy periods.
Here are some resources that can help you find specific dormancy periods:
National Association of Unclaimed Property Administrators (NAUPA): This site has links to each state’s unclaimed property website.
Unclaimed.org:Unclaimed Property Law This website allows you to search for unclaimed property by state.
Also visit our About Us page for more information or call 410-303-5510.
By understanding and complying with unclaimed property laws, you can avoid potential headaches. Not only does it prevent legal issues, but it also helps reunite rightful owners with their forgotten assets.
Once you understand the property types, the dormancy periods, and the different laws of each state, leave the compliance and reporting work to us. You owe it to yourself and your company to contact PEACC to help alleviate all your unclaimed property compliance reporting headaches.
What Constitutes Intangible Unclaimed Property Reportable Under the Law? May 30th, 2024peaccadmin
