Posted on Friday, 21st May 2010 by The Keane Organization
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A question we often hear asked is, “What does my company HAVE to know about unclaimed property recovery & reporting?”
This post aims to answer that question.
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The Basics Of Unclaimed Property Recovery & Reporting
Virtually every company has abandoned property of some form or another.
According to abandoned property law in every state, all companies are required to file reports annually with the states.
The process of unclaimed property reporting involves two phases: initial reporting (to come into compliance for the very first time) and annual reporting.
By law, unclaimed property should be reported to the state of the property owner’s last known address.
If there is no known address, the property is reported to the state in which the business is incorporated.
State unclaimed property offices hold billions of dollars of “lost” or “abandoned” property belonging to individuals as well as to businesses that have, for example, changed addresses, had a name change, or gone out of business.
Some common examples of what is reportable include:
- Customer deposits and refunds, credit balances and over payments
- Unclaimed security deposits, refund and dividend checks
- Small sums left in checking accounts
- Certificates of deposit (CDs) that have remained inactive
- Proceeds from the insurance company that were never deposited
Do the following to keep your unclaimed property recovery & reporting current:
- Keep all account information up to date
- In case of a change in your business name or address, send out notifications of the change
- If you regularly receive dividends or benefits, and the checks stop coming, notify the company of the problem immediately
Abandoned property can be reunited with the rightful owner even 30 years or more after it was turned over to the state. In fact, in most states there is no time limit on when you can conduct an unclaimed property recovery. Most states hold the money in perpetuity, waiting for the rightful owner to come forward and make a claim.
It is a good idea to check with state unclaimed property offices every five years or so even if you think your business hasn’t lost any property.
Keeping Track of Your Unclaimed Property Recovery & Reporting Options
Keane is a “holder advocate” or abandoned property specialist whose goal is simply to provide businesses with a range of escheat services, from obligation analysis and mitigation to
annual reporting, audit defense, and asset recovery.
If you wish to be compliant with the law and improve your business’s cash flow at the same time, pay attention to unclaimed property reporting laws (and the frequent changes in the laws) on an ongoing basis.
Did That Answer Your Question?
Other information that may interest you:
Check out the Keane Unclaimed Property Blog
Sign-up for an abandoned property educational summit or roundtable discussion
Click here and contact one of our consultants to get personalized recommendations. You can also call (800) 848-8896 x3132.
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