Although there are three reporting seasons for unclaimed property, fall reporting tends to be more intense than spring and summer reporting because the majority of state jurisdictions have a deadline of either 10/31 or 11/1. This leads to a substantially larger workload and the need for an understanding of the wide variations in “Fall” state requirements.
Below, we've outlined a few of the potential mistakes holders make during fall unclaimed property reporting. Any of these mistakes can lead to penalties and other costs.
Common Mistakes in Fall Unclaimed Property Reporting and How to Overcome Them
Mistake 1: Using non-standard report formats and codes
Most states require the use of the NAUPA II Standard Electronic File Format. In addition, they require a property type and a relationship code for reported items, which are contained within the NAUPA II file format.
However, the states frequently change, customize or add codes to reflect new technology and state preferences. Consequently, keeping updated about formats and codes is of the upmost importance to ensure your reporting is accurate.
Mistake 2: Filing incorrect report media
Most states require reports to be submitted on CD or via an electronic upload. For states requiring electronic upload, a holder usually must first contact the state and register for this process. .
In addition to the actual reports, certain states require a cover sheet. States that utilize online uploads tend to provide this cover sheet as part of the upload process or within their holder reporting manuals. States that utilize CD’s typically require the cover sheet to be included with the CD.
Finally, certain states require the report to include a state-provided “holder number”. This allows the state to identify whether a report has been received and the date of the receipt, to ensure timely filing.
If holders don’t use the correct media and don’t provide the required additional information, they could be subject to having their reports rejected.