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Abandoned Unclaimed (Escheat) Property
While it is not a tax, many states are increasing their audit activity and enforcement of laws related to abandoned and unclaimed property. In fact, there are states that have started hiring contract auditors who are compensated on a percentage of what they collect during the audit. This places even more importance on being aware of your compliance obligations and potential exposure.
Abandoned and unclaimed property can impact nearly every company regardless of industry line. If the company is holding money, securities or other funds that have not been claimed by an owner for a period of time, then the holder of the unclaimed property must remit the funds to the applicable state authority. The holding period and reporting requirements vary by state.
HORNE assists with managing an Abandoned Unclaimed Property (AUP) audit or assists in state unclaimed property compliance.
Some examples of potential unclaimed property include:
- Payroll
- Accounts payable
- Accounts receivable credit balance
- Customer deposits or refunds
- Rebate checks
- Gift certificates or cards
- Stocks or bonds
For more information on HORNE's abandoned and unclaimed (escheat) property assistance, contact State & Local Tax Director David Stevens at 601.326.1032 or email him at david.stevens@horne-llp.com to learn more.
