If your organization holds funds that belong to someone else—uncashed checks, unclaimed refunds, dormant accounts—you may be legally required to report and remit those assets to the State of Michigan. This process, known as unclaimed property reporting, is not just a regulatory requirement but a critical step in maintaining financial transparency and avoiding costly penalties.
Whether you’re managing finances for a private business, nonprofit, healthcare system, or local government, compliance with Michigan’s Unclaimed Property Act is essential. For municipal finance officers, school district comptrollers, and corporate accountants alike, understanding Michigan’s deadlines and reporting requirements can make the difference between a smooth reporting cycle and a stressful audit.
In this guide, we’ll walk you through Michigan’s unclaimed property rules, explain how to report, and offer practical tips to help your team stay compliant and audit-ready.
What Is Unclaimed Property Under Michigan’s Uniform Unclaimed Property Act?
Unclaimed property refers to intangible financial assets that have been abandoned or forgotten by their rightful owner after a certain period of inactivity, known as the dormancy period. These assets are not owned by the state—but the state is charged with safeguarding them until the owner comes forward.
Common types of unclaimed property include:
- Payroll or vendor checks that were never cashed
- Credit balances or overpayments
- Dormant savings or checking accounts
- Utility refunds or deposits
- Unredeemed gift certificates or stored-value cards
- Insurance policy proceeds or benefits
In Michigan, these rules are governed by the Uniform Unclaimed Property Act, enforced by the Michigan Department of Treasury. Entities that hold unclaimed property—known as holders—are required to review their records annually and report property that has reached its dormancy threshold.
Quick Note for the Curious: If you’re looking to check for unclaimed funds—either as an individual or on behalf of your business—you can search the state database at unclaimedproperty.michigan.gov.
If you’re here to understand your responsibilities as a holder of unclaimed property, this guide will walk you through the reporting process.
Who Must Report Unclaimed Property in Michigan?
If your organization holds property that belongs to someone else and hasn’t been claimed for a set period of time, you may be considered a holder under Michigan’s Uniform Unclaimed Property Act. The obligation to report isn’t limited to large corporations—many types of entities are subject to the law, including:
- Private businesses and corporations
- Financial institutions
- Healthcare organizations and insurance providers
- Colleges and universities
- Utilities
- Municipalities, counties, and school districts
- Nonprofits and religious organizations
In short, if your organization issues payments, holds customer accounts, or manages funds that could become dormant, it’s essential to understand your reporting responsibilities.
Even if you don’t currently have any unclaimed property to report, reviewing your records annually helps ensure you’re staying compliant and prepared for any future obligations.
Michigan Unclaimed Property Deadlines and Reporting Schedule
Michigan’s unclaimed property reporting cycle is based on a March 31 cutoff date, meaning property is considered reportable if it has remained unclaimed through that date. The annual reporting deadline is July 1, giving holders a three-month window to complete due diligence and file their report.
Here’s a quick snapshot:
- Report year ends: March 31
- Reports due: July 1
Michigan does not require negative reporting—if you have no unclaimed property to report for a given year, you are not obligated to file. However, it’s still considered best practice to maintain internal records showing that a review was completed.
Reports must be submitted electronically through the Michigan Treasury Online (MTO) portal and formatted using the NAUPA II standard.
How to Report Unclaimed Property in Michigan
Michigan requires holders to report unclaimed property electronically through the Michigan Treasury Online (MTO) portal. Before filing, you’ll need to identify reportable property, complete due diligence outreach, and format your report correctly.
Step-by-Step Process
- Review your records to identify property that has reached its dormancy period
- Send due diligence notices to the rightful owner (typically 60–120 days before the reporting deadline)
- Prepare your file in the NAUPA II electronic format
- Submit your report through the MTO portal
For official instructions and access to the portal, visit:️ https://unclaimedproperty.michigan.gov
Negative Reporting
f you don’t have any unclaimed property to report, Michigan does not require you to file a report. However, it’s still a good practice to document your internal review in case of questions or audits later.
Requesting an Extension
If your organization can’t meet the July 1 deadline, you may request a filing extension of up to 60 days.
To request an extension:
- Complete the “Filing Extension Request” form provided in the Michigan Holder Reporting Manual
- Include your entity’s contact information, the report year, and a brief explanation for the delay
- Submit the request before the deadline if possible. Extensions may still be granted after July 1 on a case-by-case basis
If approved, your new due date will be September 30. For help, contact the Michigan Unclaimed Property Division at 517‑636‑5320.
Dormancy Periods in Michigan
The dormancy period is the amount of time property must remain unclaimed before it becomes reportable. In Michigan, the standard dormancy period is three years, unless otherwise specified.
Here are a few common examples:
- Payroll checks and wages: 1 year
- Commissions: 1 year
- Utility deposits: 1 year
- Refunds, overpayments, or accounts payable: 3 years
- Credit balances: 3 years
- Bank accounts (savings/checking): 3 years
- Uncashed vendor or customer checks: 3 years
- Gift certificates or stored-value cards: 3 years (if applicable)
- Life insurance proceeds: 3 years from date of death or maturity
To determine if property is eligible for reporting, check the “last contact” date and count forward based on the dormancy period. If you can’t verify contact with the owner during that time, the property may be reportable.
Penalties for Noncompliance and Michigan Audit Risk
Failing to report unclaimed property can lead to costly penalties and increase your organization’s risk of an audit.
Michigan law allows the Department of Treasury to impose:
- Interest: Up to 12% annually on the value of unreported property
- Penalties: $100 per day, up to a maximum of $5,000
- Audits: The state can audit records going back 10 years, and it may use third-party contract auditors that work across multiple states
Organizations that report late or underreport can face intensified scrutiny. Even holders that file in good faith but make errors may be subject to follow-up inquiries.
Real-World Scenarios
- Municipality: A city forgets to report $15,000 in vendor refunds from dormant utility accounts. After missing the July 1 deadline, it incurs up to $1,800 in interest for the first year and faces a $5,000 penalty cap, along with audit risk for prior years.
- Credit Union: A credit union fails to report $42,000 in dormant savings accounts and uncashed official checks. This results in $5,040 in annual interest (12%) and a $5,000 late filing penalty, in addition to a state audit covering a 10-year period of inactive account management and member outreach procedures.
- Insurance Provider: A life insurance company neglects to report $85,000 in unpaid death benefits. The oversight leads to $10,200 in annual interest, a $5,000 penalty, and a compliance investigation to determine whether policyholder death records were properly cross-checked and beneficiaries were contacted.
The key takeaway? Unclaimed property risk isn’t limited to big corporations. Even municipalities, credit unions, and insurers can face steep consequences without a proactive compliance process.
Best Practices for Michigan Unclaimed Property Compliance
To stay on track and minimize risk, consider implementing these compliance best practices:
- Conduct annual reviews of outstanding checks and dormant accounts
- Automate dormancy tracking through accounting software or flagging systems
- Centralize records across departments to ensure no property is overlooked
- Send due diligence letters with enough lead time before the July 1 deadline
- Document your process even in years with no reportable property
- Consider a voluntary compliance review or consulting service if you’ve never filed before
If you’re unsure about your obligations or don’t have internal capacity to handle reporting, it may be time to seek outside help.
Final Thoughts
Michigan’s unclaimed property laws apply to nearly every kind of organization—from large corporations to local governments. With a fixed reporting deadline of July 1, it’s important to stay proactive and build internal systems that help prevent last-minute stress or audit exposure.
If you’re unsure about your reporting obligations or need support, UPCR offers guidance and tools to help Michigan holders stay compliant. For more state-specific guidance, see our unclaimed property reporting resources for Vermont, Florida, Pennsylvania, and New York.