– 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.
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.
https://lnkd.in/eTMSCMqp
VDA Invitation Dates – VDA Program – State of Delaware
vda.delaware.gov
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
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!
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.
Unclaimed Property: “unclaimed property,” state law defines it as intangible property– meaning it’s not a physical object you can hold.
The purpose of unclaimed property laws is to protect the property rights of the lost/rightful owner and to ensure benefit to the public.
Unclaimed property involves intangible property, normally cash, checks or securities. The only
tangible property involved would be safe deposit box contents that goes unclaimed if the
holder/bank may have lost contact with the owner. This would constitute unclaimed property
when the state dormancy/holding period has been met.
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