This blog was originally created at the request of the Association for Financial Professionals (AFP) organization and posted to their website in August 2019 in a series dedicated to the education of its’ members and attendees of the 2019 AFP Annual Conference in Boston, Oct, 20-23.
The likelihood of an unclaimed property audit has increased in recent years due to several factors, including the proliferation of third-party auditors, realization by states that significant amounts are involved, and the escalation of unclaimed property litigation. Escheat compliance is no longer optional and being audited is not a matter of if, but when.
Situations and events that may bring an auditor to your door include:
- Failure to file or filing late
- Filing negative reports year after year
- Filing incomplete reports or reports that don’t match remittance
- Not filing in the state’s required format
- Not reporting property types that are standard for your industry
- Reporting much less than similar organizations
- Filing to the incorrect state
- Mergers and acquisitions
- Claiming property without being compliant