Discover the ins and outs of unclaimed property reporting, a crucial responsibility for businesses, financial institutions, and entities safeguarding assets on behalf of others. Here’s a curated list of FAQs to guide you through the maze:
- Who Must Report Unclaimed Property?
- In general, businesses, financial institutions, and entities holding funds or assets for others must report unclaimed property. This encompasses banks, insurance companies, corporations, and various organizations.
- Is Unclaimed Property Reporting Optional?
- No. Unclaimed property laws exist in every state, mandating annual reporting. Companies must comply with these laws to avoid penalties.
- What Types of Property Should Be Reported?
- Property types vary by jurisdiction but may include dormant bank accounts, uncashed checks, unclaimed wages, insurance proceeds, stocks, dividends, and abandoned safe deposit box contents.
- When Is Unclaimed Property Considered Reportable?
- Unclaimed property becomes reportable at the end of the dormancy period, typically 3-5 years of inactivity or lack of contact with the owner, as specified by state laws. Some exceptions apply, especially for wages.
- When Should You Report Unclaimed Property?
- Unclaimed property reports are due annually, with most states setting deadlines around October 31 or November 1. Some states may have Spring/Summer deadlines between March 1 and July 1.
- What Information Is Required in a Report?
- Reports typically need the owner’s name, last known address, and property details such as type, amount, last transaction date, or check date.
- Are There Penalties for Non-Compliance?
- Yes, penalties for non-compliance include fines, interest on past due amounts, and penalties/interest for missing deadlines. States can also legally audit non-compliant companies.
- Where Do You Report Unclaimed Property?
- Follow three priority rules: report to the state of the owner’s address of record, the state of incorporation if no address of record exists, and the state of incorporation if the address is foreign and the country lacks unclaimed property laws.
- Are Some Property Types Exempt from Reporting?
- Yes, exemptions vary by state. Some exempt B2B credits, while others may exclude gift cards under specific circumstances.
- What are the benefits of outsourcing unclaimed property to Dunbar?
- Dunbar’s team of compliance specialists have decades of experience in unclaimed property reporting and consulting. Our state-of-the-art, fully automated reporting process minimizes manual processing risks, ensuring accuracy and efficiency. By outsourcing to Dunbar, you eliminate the burden of researching and staying current with ever-changing state compliance standards. Let Dunbar handle these complexities for you, allowing you to concentrate on your core business functions worry-free. Partner with Dunbar for seamless, compliant, and stress-free unclaimed property management.