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Aged Credit Balances
Bond Redemptions Cash or Stock Dividends Certified Checks Gift Certificates Health or Accident Payments Insurance Premiums and Claims Interest Money Orders Payroll Checks Pension and Profit Sharing Plans Royalties Rebates Refunds Traveler’s Checks Unexchanged Shares Vendor Checks 
Distribution
Finance and Securities Banks Broker Dealer Credit Unions Mortgage Mutual Fund Companies Transfer Agents Healthcare Insurance Manufacturing Retail Telecommunications Service |
Even some of the best-managed companies can find themselves liable to the states for millions of dollars in abandoned property. Does your company...
• Write off a substantial number of aged accounts receivable credit balances or operating checks or have a policy of writing off miscellaneous income?
• Employ a transient workforce • Offer gift certificates or rebates • Issue a large number of checks • Exclude reportable property from its reports? If you answered yes to any of these questions, you may have significant abandoned property exposure. If your company is holding abandoned property, it needs to be reported. Has your company ever filed an abandoned property report? If not, why not? Why is abandoned property a problem?
As they search for new revenue sources, states are enforcing laws requiring companies to turn over unclaimed assets more rigorously. Since the responsibility to report abandoned property rests on the holder, your company may be at risk for an audit. You may be contacted for an audit by a state, or by an outside contract auditor hired by the states.
A state audit could entail a review of the last twenty years of your company’s financial records, or the state could project the liability where records no longer exist. State audits often result in findings of millions of dollars in unclaimed assets, interest and penalties, which could profoundly affect your company’s bottom line. Why would a state choose my company to be audited?
States routinely check for non-compliance with their abandoned property laws. It is projected that a majority of companies in the United States are not in full compliance with the various state laws.
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