It is not well known, but government agencies of all sizes, from municipalities to even the federal level, are holding significant refunds owed to companies. These are not escheated funds held in a state unclaimed property database, but rather financial liabilities owed directly to companies by a government agency. This information is often not made available via public websites and can be difficult to obtain.
Most of these unclaimed funds relate to outstanding tax refunds caused by duplicate payments, over-payments, and reassessments. By our estimate, there are billions of dollars of outstanding tax refunds being held by government agencies.
Why Is This a Problem?
A common reason these refunds go unclaimed is due to relationships with third parties. While companies trust third parties to ensure complete, timely, and accurate tax filings, any related refunds that could be obtained are often just an afterthought. Below are three common scenarios which lead to tax refunds going unclaimed:
It is important to be vigilant when it comes to monitoring tax refunds. In some instances, these refunds are only available by request and only claimable for a certain period of time before your right to the funds is forfeited. In as little as 6 months, your refund may come and go without you even knowing!
What Is The Solution?
Think your company may be owed money? Corporate Asset Recovery is the solution and a great way to drive revenue for your company. Partnering with a Corporate Asset Recovery firm can stop your refunds from going unclaimed or even worse, expiring. In a complex industry full of constant changes, utilizing a Corporate Asset Recovery partner is vital.
Interested in checking to see if there are any unclaimed funds owed to your organization? Contact Us and we would be happy to do a free search. If you need more resources to help answer your escheat compliance challenges, visit the Knowledge Vault where you will find Ebooks, white papers and other documents to help you navigate the complexities of unclaimed property compliance.
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