COMMON AREAS A STATE WILL INVESTIGATE WHEN PREFORMING AN UNCLAIMED PROPERTY COMPLIANCE REVIEW

Prior to a full-fledged unclaimed property audit, a state may decide to perform a basic review of a holder to see if it may be cost effective to spend the money and resources on a complete audit of a holder. State funding is low so many states are turning to holder reviews prior to an audit.
Most of these state reviews can be done over the telephone or through a letter, minimizing the expenses to the state.
Some the areas a state will ask the holder/company for information on, prior to conducting a possible unclaimed property audit are:
1) The holder’s written unclaimed property policies & procedures.
2) The unclaimed property reporting/filing history for all entities including acquisitions and divestitures. (Note: each separate entity will have its own EIN)
3) The holder’s De Minimus policies. All intangible property, no matter what the dollar amount, is required to be reported in most states.
4) The property types a state would be expecting to see on the holder types report.
5) How the holder handles outstanding checks on closed bank accounts.
As you can see, investigating any of the five areas above, in a quick letter from the state or during a telephone call may justify a state unclaimed property audit. This is why it makes it best to educate all employees in your accounting, treasury operations or the department handling your unclaimed property reporting obligations.
For further information on surviving a state review or, worse yet, the dreaded unclaimed property audit, contact a professional at PEACC today at 410.303.5510 or email info@peacc.com. We will be glad to help.