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Abandoned and Unclaimed Property
An Introduction to 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.
Learn More About Unclaimed Property
- Historical basis of escheat
- Unique Terminology
- Annual Compliance Basics
- Voluntary Disclosures
- Horrors of Audits
How Springboard Legal Helps Corporate Holders with Unclaimed Property
Proactively Manage Liabilities and Risk.
When it comes to unclaimed property, Springboard Legal has three goals for your company:
- To reduce the risk of an unclaimed property audit.
- To minimize the impact of an audit when they do happen.
- To reduce the potential liability from an audit.
Nexus Need Not Apply.
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.
- Based on the property owner's address
- If no address, then your state of incorporation
- Continued Reporting Obligations
Annual Compliance.
The annual compliance program is how you report unclaimed property and thus reduce your outstanding liability to the states.
- Spring Reporting: March 1 - May 1
- Summer Reporting: June 1 - July 1
- Fall Reporting: October 31 - November 1
Audit Defense & VDAs.
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.
- Multi-state audits are the norm
- Contingency fee auditors are common
- Spans multiple years
- Burdensome process for your finance and legal teams
Kimberly DeCarrera
Meet Your Unclaimed Property Expert
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.
- Practicing Attorney Since 2006
- Masters in Tax
- Consulting Experience
Let's Manage Your
Business Liabilities!
