Unclaimed Funds/Abandoned Property/Escheatable Property
Although this area goes by many different names, most companies do not understand what this is or how to comply with the complex state laws in this area. All 50 states, District of Columbia and the territories all have unclaimed funds laws.
Unclaimed Funds is not a tax…it is property that businesses and individual may have an ownership interest in, but do not know it even exists in many cases. Technically, a business’ treasury department should manage this area, but many times it falls into the lap of the tax department.
Understanding Unclaimed Funds/Abandoned Property/Escheatable Property
The laws in this area is very complex and differ greatly between the states. Our team have experts can develop a plan and process and procedures for your company to make sure you are in compliance with the various states laws.
We can either assist you in training company personnel in what to look for what to do, or we can do it for you. Accounts payables, accounts receivables and payroll needs to be reviewed by June 30th each year, and then letters have to be sent to the customers, vendors, or employees to determine if you are holding any monies that they are due back. Returns have to be filed, usually by October 30th each year. There is no statute of limitations for a look back if a return has never been filed, and the penalties and interest upon audit can be onerous.
We can also do a voluntary disclosure agreement with a state to minimize any exposure. We can also make sure your company has policies and procedures in place to minimize any interest and penalties in this area.