How can a Holder/Company be reporting unclaimed property and still not be compliant?
– By disregarding or not performing the State mandated
annual due diligence/search letter mailing.
– By reporting all property to just one State or the State of
Incorporation.
– By reporting property using an incorrect holding/dormancy
period or ‘covered to/cut off” date.
– By assuming a third-party is reporting certain unclaimed
property on your behalf (benefits/payroll).
– By having a lapse in reporting history or consistency.
– By under or over reporting or failure to report all property.
dollar amounts or types.
– By not filing Negative or Nil Reports.
– By not understanding the customer/payee-generated contact
rules.
You Reported Unclaimed Property, But Are You Compliant?
Stated another way, companies often think reporting unclaimed property ensures compliance. Not quite! Here are hidden pitfalls:
- Skipping mandated “owner search” letters.
- Reporting to just one state (it depends on owner location).
- Using wrong dormancy periods.
- Assuming a third-party reports benefits/payroll.
- Inconsistent reporting history.
- Incorrect property amounts or types.
- Failing to file reports with zero unclaimed property.
Understanding these risks can save you from penalties and audits.