So, you’ve got all your unclaimed property in a liability account ready to report to the appropriate states. Now, you’ve got to abide by the due diligence/search letter requirements laid out in each state, where most letters are required to be sent out to the property owner’s last known address as reflected in the holder’s books and records. Note, the cost of these mailings is considered the cost of doing business in most states and therefore not deductible or reimbursed.
You think, what are the benefits of these letters, why are they required? The biggest benefit is it is required by state law in almost all states, even though it’s a time-consuming project.
The benefits continue to be:
- You may reestablish a relationship with the lost owner.
- Provides positive customer service.
- May prevent current, past, and future compliance and reporting obligations.
- Decreases the holder workload.
- May increase revenue or business.
- Alleviates fines and penalties for non-compliance.
- And, most importantly, due diligence letter mailing is required by law!
For questions, or to hear more about holder requirements and how to navigate all of them, please reach out to the professionals at PEACC at 410.303.5510 or email at info@peacc.com.
PEACC, where unclaimed property consulting doesn’t have to be expensive, just good!