– Vendor or Accounts Payable Checks
– Payroll Checks or Denied Automatic Payments/Direct Deposits
– Refunds/Rebates
– Account Receivables/Credit Balances
– Customer Overpayments
– Unapplied Cash
– Unredeemed Gift Certificates
– Dormant Back Accounts (Checking/Savings Accounts)
– Life Insurance Proceeds Due
– Uncashed Benefit Checks
Unclaimed property in the corporate world typically refers to intangible property and are funds owed to another party that have remained unclaimed or uncashed for a specific time period. Normally a period of
one, three or five years, known as the dormancy period. After this dormancy period expires, the property is required to be reported and remitted to the Owner’s State of last know address or State of Incorporation if the address is unknown.
– The property must be fixed and under certain legal obligations.
– The States take custody of these unclaimed funds and hold the property until the rightful Owner comes forward to claim them.
– All States have reporting requirements including D C , Guam, Puerto Rico & the Virgin Islands.
– Unclaimed Property Reporting is NOT a tax – traditional NEXUS does not apply.
Visit PEACC.com for more information.
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
States that have a unique report due date for Holders:
| REPORT DUE DATE | STATE |
| March 1 | Delaware |
| March 10 | New York |
| March 31 | Connecticut |
| April 15 | Pennsylvania |
| April 30 | Florida |
| May 1 | Illinois |
| May 1 | Vermont |
| July 1 | Michigan |
| July 1 | Texas |
A Holder may or may not have unclaimed property due to any of the above mentioned States. But it’s a good idea to check and see. Note: most of the dormancy periods for the above mentioned States are going to be 3 or 5 years, depending on the type of property and State. For all other States, the report due date is either in the Fall or Spring, depending on the Holder & Property type. 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
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
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
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!
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
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!
~ 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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