Unclaimed Property Compliance

30 May 2024
Sticky Post By Posted in Intangible Unclaimed Property, Unclaimed Property Compliance Permalink

What Constitutes Intangible Unclaimed Property Reportable Under the Law?

Sticky Post By On May 30, 2024
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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.

27 Feb 2024
Sticky Post By Posted in Unclaimed Property Compliance, Unclaimed Property Reporting With No Comments Permalink

Where Do I Report My Unclaimed Property?

Sticky Post By On February 27, 2024 With No Comments

1) Unclaimed intangible property is required to be reported to the State of the property Owner’s last known address as reflected on the Holder’s books and records;
2) Unclaimed intangible property is required to be reported to the Holder’s State of Incorporation if the Owner’s address is unknown, in a foreign Country, or in a State that exempts the property type.

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07 May 2020
Sticky Post By Posted in Unclaimed Property Compliance, Unclaimed Property Reporting With No Comments Permalink

California Decides Against Amnesty

Sticky Post By On May 7, 2020 With No Comments

The California State Controller’s Office (“SCO”) has been researching options for increasing Holder compliance to their unclaimed property reporting requirements for about a year. One of the options was to offer Holders an Amnesty Period that would waive any interest or penalties on any property reported past due. Numerous years ago the State offered the same type of Amnesty Period and it produced a major windfall of property revenue for the State.

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15 Nov 2018
Sticky Post By Posted in Unclaimed Property Compliance Permalink

Delaware VDA Opportunity Notification Letters

Sticky Post By On November 15, 2018

Based on recent correspondence with the State of Delaware and the Holder community, it has come to PEACC’s attention that Delaware’s Secretary of State has recently mailed opportunity letters to participate in the State’s Voluntary Disclosure Agreement (“VDA”) program. These notices were mailed to hundreds of companies throughout the United States who are incorporated in Delaware. As stated in the State’s recently revised laws and regulations, companies receiving the VDA letter have 60 days to respond. Companies not responding to the letter will be referred to the Delaware Department of Finance for an unclaimed property audit. Historically, the State turns to aggressive third-party, contingency fee paid auditors to perform these audits.

With this new letter notification initiative in mind, it is a best practice for any companies incorporated in Delaware, not fully compliant with the State’s unclaimed property rules and regulations, to keep an eye out for these VDA notices so they do not miss this opportunity to participate in the State’s VDA program.  PEACC advises all companies incorporated in Delaware (not just the ones receiving the letter) ensure they are in full compliance with the unclaimed property State laws and requirements as they may again begin to aggressively enforce their reporting requirements through State and State sponsored audits.

PEACC is advising companies to let their mailrooms and other appropriate personnel know to keep an eye out for any correspondence letters from the State of Delaware so this opportunity to report through a VDA does not pass them by. Missing this opportunity will lead to an unclaimed property audit.

For further information about this Delaware VDA letter writing campaign or the State’s VDA program and its benefits, please contact PEACC at 410.303.5510 for a free confidential consultation.

29 Mar 2018
Sticky Post By Posted in Unclaimed Property Compliance Permalink

California Introduces Bill for Voluntary Compliance

Sticky Post By On March 29, 2018

The State of California recently introduced Bill (AB 2773) that, if passed, would create a Holder friendly Voluntary Compliance Program. This Program would allow Holders to report and remit past due property to the State without the threat of interest and penalties being assessed. If the Bill is passed, Holders not fully compliant with California’s unclaimed property regulations would have the opportunity to get compliant with a reduced look-back period and without the threat of interest or penalties being charged for past due property,

It has been almost twenty years (2001) since California last offer a similar amnesty reporting program. This Program was initially offered for one year, but it was so lucrative for the State, they extended it another year through 2002. The State took in millions of dollars as Holders chose to take advantage of it.

As an incentive for Holder compliance, most States currently offer either a formal or informal voluntary compliance program, normally known as a VDA (“Voluntary Disclosure Agreement”).

However, California currently is one State that will automatically assess at 12% per annum interest penalty on all past due property from the date it should have been reported. A Holder may request to appeal this 12% interest penalty, but it must be requested individually after the assessment. However, this request for abatement must be for good cause.

If AB 2773 is passed, it would allow the State to waive interest and penalties for Holders accepted into the Program and participating in good faith. The Program would be open to all Holders who aren’t currently under audit or have been selected for audit by the State or one of their agents. Once accepted into the Program, another benefit is a shortened look-back period of ten previous report years from the date the Holder is accepted into the Program. Currently, audits may go back to the Holder’s inception.

Bill AB 2773 was referred to California’s Judiciary Committee on March 20, 2018. If passed, a Holder would have through January 1, 2024, to enter and participate in this formal VDA amnesty program.

If enacted, this Bill would benefit any Holder conducting business in California, incorporated there, has a large amount of property due to the State or has historically under-reported. The Bill has gained major support from the Holder community and organizations throughout the Country.

PEACC will continue to monitor the progress of AB 2773 and hopefully the passing of it.

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