No… not Halloween – although that would be more fun! BUT, no trick – this date is important for companies who are required to file and remit their abandoned unclaimed property to the states! A reminder – don’t “get tricked” by making common unclaimed property reporting mistakes like:
Writing off to income or assuming you don’t have to report outstanding checks or dormant accounts.
States are more aggressive in performing audits. Chances are you will be targeted, and many states take the position that ignorance is no longer an excuse.
Missing due diligence dates and/or report deadlines
There are many variances between states’ due diligence and reporting dates. Most states require a “fall” reporting date of either October 31 or November 1 for property that has become dormant between July 1 of the prior year and June 30 of the current year. Due diligence is usually required between 60 – 120 days prior to reporting.
Inaccurately calculating dormancy periods
You must file reports to 54 U.S. Unclaimed property jurisdictions (50 states, Washington D.C., Virgin Islands, Puerto Rico and Guam). It is YOUR responsibility to review and apply dormancy laws for each state appropriately.
Reporting to the wrong states
The law requires you to report to the state of the owner’s last known address (even if it’s a bad address). If you don’t have the owner’s address, you need to report to your company’s state of incorporation.
Overlooking property types or using incorrect property codes
The laws require you to report all property unclaimed by owners. It may be difficult to identify some property as unclaimed, because it may be the result of automatic transfers of value or similar situations. However, you must determine the specific property codes each state requires, as an inaccurate property code could result in penalties or fines if the dormancy periods are incorrect and the property is reported late.
Correcting possible mistakes
Continual review of each state’s laws and updating your reporting procedures will keep your company in compliance. However, it can be confusing and time consuming, and keep your staff from more important tasks. A professional advisor like UPCR can help you implement due diligence and reporting services cost-effectively, because it’s all we do.
Contact us for more information.