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Abandoned and Unclaimed Property
If you are new to unclaimed property, it is probably because your company received an audit letter from a state. Or perhaps you heard an audit horror story and are looking to avoid the same fate.
But first, you need to know the basics of escheatment. Yes, we have three names for the same thing – unclaimed property, abandoned property, and escheat. Sometimes, you’ll even see it abbreviated as AUP (abandoned and unclaimed property) or UP (unclaimed property).
It’s all the same process, so let’s get you caught up on the basics of unclaimed property.
When it comes to unclaimed property, Springboard Legal has three goals for your company:
Remember, unclaimed property is not a tax and traditional notions of nexus do not apply. Instead, property rights attach and you may be subject to reporting in states that you would otherwise not have any connection to.
The annual compliance program is how you report unclaimed property and thus reduce your outstanding liability to the states.
The states, aided by third-party audit firms, have the right to audit your compliance. Some states have a Voluntary Disclosure Agreement (VDA) program where you can self-audit and report to avoid an audit.
Kimberly DeCarrera
Kimberly DeCarrera once answered a job ad seeking someone with legal and accounting experience. With her law degree and accounting experience, she knew she was the right person. This led to a new career path branch, helping large companies with their unclaimed property compliance and audit defense.
Kimberly now helps companies of all sizes in their efforts to start and maintain an annual compliance program, defend multi-state audits, and voluntarily disclose unclaimed property liabilities. She also assists due diligence teams on mergers and acquisitions to identify and quantify potential unclaimed property risks of target companies.