- Every state and territory in the United States has unclaimed property reporting laws.
- Every company (holder) has a legal obligation to report unclaimed property to the state of the last known address of the property owner.
- Most holders, regardless of size or industry, have unclaimed property to report.
How do holders know if they have unclaimed property?
- Do you have any of these types of aged/old liabilities on your accounting records?
- Payments due to vendors
- Credits / Account balances owed to customers
- Wages / Compensation due to employees
- Other types of unreconciled/undischarged liabilities (insurance claims, dividend payments, etc.)
If you answered “yes” to any of these then you likely have unclaimed property to report. However, many businesses 1) write-off these liabilities or 2) just continue to carry them on their books, month-after-month. These are not recommended practices because reporting unclaimed property is the law. Non-compliance puts an organization at risk for audit where fines and/or penalties can be imposed which may have a significant financial impact to your company.