Problems & Solutions

Keeping Up with Unclaimed Property

Unclaimed property is a source of concern and a potential liability for companies. “Many companies are being audited, and a number of states use third-party auditors who are paid on a contingency fee basis,” says Karen L. Anderson, J.D., Vice President, Reporting Compliance, at Keane Unclaimed Property. “In addition, the costs of noncompliance can be... Read more »
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Process Unclaimed Property Correctly and Avoid Penalties

State laws governing the reporting of unclaimed property are varied and complex, but in order to avoid penalties and interest, AP managers must ensure that outstanding items are properly identified and either resolved or reported. “States have become aggressive in doing auditing for unclaimed property over the last five years,” warns Karen L. Anderson, Vice... Read more »
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Unclaimed Property: What Are Your Due Diligence Obligations?

Before you can report and remit unclaimed property you must fulfill your due diligence requirement. That is, you must attempt to contact the owner of dormant property to give them a last opportunity to claim the property from the holder before it is turned over to a State Unclaimed Property Administration. Due diligence makes for... Read more »
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Ban on Encryption Impacts the Holder Community

States are increasingly requiring that unclaimed property be reported through state website portals. “This trend is continuing as Texas recently adopted administrative rules (34 TAC 1.13.13.21) requiring online reporting through the Texas on-line portal,” reports Karen Anderson, Vice President, Reporting Compliance at Keane Unclaimed Property in a recent blog. The Texas rules, effective December 30,... Read more »
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Special Report: Making Due Diligence a Risk Management Strategy

Contact, RPO, 120 days, last known address, boldface type . . . all of these terms are familiar to anybody wading through the state unclaimed property due diligence requirements as they work to achieve compliance for their business. The differing state requirements for statutory due diligence (SDD) can be overwhelming, time consuming, and expensive. However,... Read more »
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Unclaimed Property: To Avoid Risk, Be Clear on Your Understanding of the Term

Reciprocity refers to the arrangements that some state unclaimed property departments have with other state unclaimed property departments, whereby the state of a business’ chief location or headquarters (the “receiving” state) would be permitted to receive unclaimed property that under the rules of jurisdiction should be reported to another state (the “entitled” state). In a... Read more »
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Unclaimed Property: Guidelines for State that Holder Needs to Consult

According to the Unclaimed Property Professionals Organization (UPPO), “unclaimed property defines intangible or tangible property that has been abandoned or lost by its rightful owners for an extended amount of time.” UPPO reports that businesses and residents abandon more than a billion dollars of tangible and intangible property annually, making it a sizable source of... Read more »
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Unclaimed Property: Challenges

With state budget deficits continuing to grow, unclaimed property compliance and related enforcement audits are on the rise and here to stay. Approximately 59 percent of the states control unclaimed property within the treasury department, which demonstrates the importance of unclaimed property revenues to state budgets. In fact, state treasuries held $33 billion in 117... Read more »
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Create a Review Policy to Resolve Your Outstanding Accounts

Accounts payable professionals need to be vigilant in their efforts to stay on top of the changes in escheatment laws and regulations. While unclaimed property (UP) laws are not tax laws, they have common elements because of the annual filing requirement governed by state law. As with tax compliance, there is a compliance element to... Read more »
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Four Steps to Avoid the Risk of Unclaimed Property Noncompliance

Revenue-strapped states will be on high alert when it comes to enforcing unclaimed property (escheatment) laws this year, and are increasing the use of aggressive audits. It is imperative that AP managers be up to date on any state developments in unclaimed property regulations and develop adequate control procedures to meet the compliance challenge. Escheatment... Read more »
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