February 28, 2024 peaccadmin

Unclaimed Property Fines & Penalties for Non-Compliance

Unclaimed Property Laws: Avoid Costly Fines and Penalties for Your Business

Every state has unclaimed property laws that require businesses to turn over unclaimed funds to the state. These funds can include things like customer refunds, payroll checks, security deposits, and even stocks. Failing to comply with these laws can result in hefty fines and penalties for your business.

What Happens if You Don’t Comply?

There are two main ways businesses can get into trouble with unclaimed property laws:

  1. Failure to report and remit unclaimed property: This means you don’t even tell the state that you have unclaimed funds on hand.
  2. Failure to comply with the entire state unclaimed property statute: This could include things like not properly reporting the amount of unclaimed property you have, not following the state’s deadlines for reporting, or not remitting the funds to the state in the proper way.

The Cost of Non-Compliance

The penalties for non-compliance can vary depending on the state, but they can be significant. Here’s a breakdown of some of the common penalties:

  • Interest penalties: These are typically assessed at a rate of 10% to 25% of the value of the unclaimed property.
  • Civil penalties: These can range from $100 to $200 per day, up to a maximum of $10,000.
  • Fines: These can range from $1,000 to $25,000, plus some states may add an additional penalty of 25% of the value of the property.
  • Criminal penalties: In some states, non-compliance can be considered a misdemeanor, which could result in jail time.

Avoiding Trouble

The best way to avoid these penalties is to comply with your state’s unclaimed property laws. This means understanding the laws that apply to your business and taking steps to ensure you are in compliance. Many states offer resources to help businesses comply with unclaimed property laws. You can also consult with an attorney who specializes in unclaimed property law.

Contact PEACC.com for expert advice on unclaimed property fines and penalties for non-compliance.

By taking the time to understand and comply with unclaimed property laws, you can save your business a lot of money and hassle in the long run.

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