Unclaimed property must be reported and remitted to the appropriate state authorities. Unclaimed property includes items such as uncashed or unredeemed checks, credits or other payment obligations to customers or vendors, uncashed payroll checks or employee expense reimbursements, untendered stock certificates and uncashed dividend payments, among others. Improper accounting treatment of these items could lead to misstated financial statements.
Would you be surprised to learn that most businesses have unclaimed property and that reporting unclaimed property is mandatory in all 50 states? Businesses must report and remit unclaimed property to the state of the last known address of the property’s rightful owner, regardless of whether the company conducts business in that state – there is no “nexus” defense as there is with tax matters. Many states even require businesses to affirmatively report if they have no unclaimed property.
State administrators estimate that only 10-20% of businesses comply with unclaimed property regulations. Is your company in compliance? F3 can help in determining your company’s unclaimed property liability, properly report that information, or help defend your organization in an unclaimed property audit.