While abandoned or unclaimed property is not a tax, it has become a significant source of revenue for many states. The information age has also allowed state governments to more effectively locate companies that have never filed an unclaimed property report. State inquiries can lead to an audit and an audit can quickly evolve into a costly matter for your business.
Generally, all states have some type of unclaimed property laws that declare money, property or other assets to be abandoned after a period of inactivity, usually three to five years. Should the company fail to locate the property owner within this time period, the company is required to turn the property over to a particular state's abandoned property department.
A few common forms of abandoned property consist of, but are not limited to:
Non-compliance with state abandoned or unclaimed property laws can be costly when considering that state assessments can cover a significant number of years and penalty and interest additions. Abandoned or unclaimed property audits can reveal significant and material liabilities that may impact reporting in accordance with Sarbanes-Oxley Section 404.
Schneider Downs' State and Local Tax professionals can help you traverse the complex state abandoned or unclaimed property laws and procedures to limit or eliminate potential liabilities.
Senate Passes the CARES Act – $2 Trillion Relief Package Moves to the Houseread more >
Application to Receive Funding for On-Road and Class 8 Fleet Vehicle Projects in Pennsylvania Now Available!read more >
Financial Fitness: Setting SMART Goalsread more >
Good News Regarding Excess Business Losses For Your Pass-Through Construction Businessread more >
Financial Fitness - Are my personal finances on the right track?read more >
One PPG Place, Suite 1700
Pittsburgh, PA 15222
65 East State Street, Suite 2000
Columbus, OH 43215
1660 International Drive, Suite 600
McLean, VA 22102