Unclaimed Property Audits: Don’t Be the Easy Target
Ever feel like your company got unfairly chosen for an unclaimed property audit? States are getting creative in how they pick targets! Here’s how to avoid being their next victim:
- Multi-State Woes: States team up to share audit costs. Operating across multiple states puts you at higher risk.
- Reciprocal Reach: One state audits for another. Be cautious if you’ve had contact with a state you don’t typically do business with.
- Bounty Hunters on Payroll: Third-party auditors get a cut of what they find for the state. Meticulous record-keeping helps avoid surprises.
- Phone Call Pop Quiz: A state might call to test your compliance knowledge. Unclear answers can raise red flags for a deeper audit.
- High Visibility, High Risk: Having a big presence (think billboards or large fleets) can catch unwanted attention from auditors.
- Voluntary Disclosure Option: Sometimes, a state offers a chance to self-audit and avoid penalties. Consider this if your compliance is uncertain.
Understanding these tactics empowers you to minimize your audit risk. Remember, the best defense is proactive compliance and keeping detailed records.
Bonus Tip: Consider building a dedicated unclaimed property team within your company. This team can stay updated on changing regulations, ensure accurate reporting, and ultimately save you time, money, and stress.
For more information contact us at PEACC.com. Please contact the professionals at PEACC at 410.303.5510, to discuss how to respond and how to proceed.
