Small Business Taxes & Management

Frequently Asked Questions


Unclaimed Property Reports

 

Small Business Taxes & ManagementTM--Copyright 2013, A/N Group, Inc.

 

What happens if a customer fails to cash a refund check? Or a supplier doesn't cash your payment? Or a former employee doesn't cash his paycheck? You may think you've got a windfall--but you don't. Most states have substantially adopted the Uniform Disposition of Unclaimed Property Act. You may have heard of it as escheat, unclaimed property, abandoned property, etc. You probably know that if you've got a dormant bank account, it's turned over to the state. While the rules vary from state to state, that generally applies to all property--tangible and intangible. Failure to report the unclaimed property to the state can result in penalties.

Generally, unclaimed or abandoned property arises if the owner has not generated any activity in the account or contacted you regarding the status of the account for the specified time. Different states have different requirements. It's generally 3 or 5 years, but the rules vary widely for individual items. For example, the dormancy period for wages is often shorter, sometimes as short as 1 year. Insolvency distributions, liquidations of businesses, dividends, certain deposits, etc. can also have a short period. Special rules often apply to financial institutions such as banks and insurance companies.

The rules vary by state, but you generally must make a good faith effort to locate the owner of the property. That may be as rudimentary as sending a first-class letter to the last known address. Talk to your attorney, but certified or registered mail provides support you took action. You may have to file reports in more than one state. Some states require you to report abandoned property to that state if the owner's last known address was in that state.

While such laws have been around for some time, many states are now becoming more aggressive and are planning audits. You could be assessed penalties for failure to file reports and deliver any abandoned property to the state.

We've included below a general list of the requirements for each state, including the holding period, report date, and the agency to whom you report the abandoned property. Please keep in mind that there are many exceptions to the general rule. Check the rules with the reporting agency and your accountant or attorney. And check the record retention period. It can be much longer than that for your tax returns.


State          Period     Report Date    State Agency

AL          3 unclaimed      10-31      State Treasurer
AK          3 unclaimed      11-1       Dept. of Revenue
AZ          5 abandoned      10-31      Dept. of Revenue
AR          5 abandoned      11-1       State Auditor
CA          3 abandoned      10-31      State Comptroller
CO          5 unclaimed      11-1       State Treasurer
CT          3 abandoned      4-1        State Treasurer
DE          5 abandoned      3-1        Secretary of Finance
D.C.        3 unclaimed      10-31      Office of Finance & Treasury
FL          5 unclaimed      5-1        Banking & Finance Dept.
GA          5 abandoned      11-1       Commissioner of Revenue
HI          5 abandoned      10-31      Director of Finance
ID          5 abandoned      11-1       State Treasurer
IL          5 unclaimed      10-31      State Treasurer
IN          5 unclaimed      11-1       Attorney General
IA          3 unclaimed      10-31      State Treasurer
KS          5 unclaimed      10-31      State Treasurer
KY          3 abandoned      11-1       Dept. of Revenue
LA          5 abandoned      10-31      State Treasurer
ME          3 abandoned      10-31      State Treasurer
MD          3 abandoned      10-31      State Comptroller
MA          3 abandoned      11-1       State Treasurer
MI          3 abandoned      7-1        Dept. of Treasury
MN          3 abandoned      10-31      Dept. of Commerce
MS          5 abandoned      10-31      State Treasurer
MO          5 abandoned      11-1       State Treasurer
MT          5 abandoned      10-31      Dept. of Revenue
NE          5 abandoned      10-31      State Treasurer
NV          3 abandoned      10-31      State Treasurer
NH          5 abandoned      10-31      State Treasurer
NJ          3 abandoned      11-1       State Treasurer
NM          5 abandoned      10-31      Director of Revenue & Taxation
NY          3 abandoned      3-10       State Comptroller
NC          5 abandoned      10-31      State Treasurer (or Commissioner of Insurance)
ND          3 abandoned      11-1       Admr. State Abandoned Property
OH          3 unclaimed      10-31      Director of Commerce
OK          5 abandoned      10-31      State Tax Commissioner
OR          5 abandoned      10-31      State Land Div.
PA          5 abandoned      4-15       State Treasurer
RI          3 abandoned      10-31      Treasury Dept.
SC          5 abandoned      11-1       Dept. of Revenue
SD          3 abandoned      10-31      State Treasurer
TN          5 abandoned      5-1        State Treasurer
TX          3 abandoned      11-1       State Treasurer
UT          3 abandoned      11-1       State Treasurer
VT          3 abandoned      4-30       State Treasurer
VA          5 abandoned      10-31      State Treasurer
WA          3 abandoned      10-31      Dept. of Revenue
WV          5 abandoned      11-1       State Treasurer
WI          5 abandoned      11-1       State Treasurer
WY          5 abandoned      11-1       State Treasurer

Copyright 2013 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject.--ISSN 1089-1536


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--Last Update 07/19/13