Is your company at risk?
Even some of the best-managed companies can find themselves liable to states for millions of dollars in abandoned property.
Has or does your company, subsidiary, or division...
- Recently entered into a merger, acquisition, or dissolution?
- Write off a substantial number of aged accounts receivable credit balances or aged accounts payable credits to miscellaneous income/expenses?
- Have a significant number of outstanding operating, vendor, or refund checks on its bank accounts?
- Employ a transient workforce?
- Offer gift cards/certificates or rebates?
- Issue a large number of checks?
- Exclude reportable property from its unclaimed property reports?
If you answered “yes” to any of these questions, you may have significant abandoned property exposure. If your company is holding potential abandoned property, it needs to be addressed.
Has your company ever filed an abandoned property report?
If not, why not?
Why is abandoned property a problem?
In search of new revenue sources, states are enforcing laws requiring companies to remit 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 a state or group of states.
A state audit could entail a review of the last twenty-five years of your company's financial records, or the state could project the liability when 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. Many speculate that a majority of companies in the United States are not in full compliance with the various state laws. Recently stepped up state compliance efforts have increased the number and complexity of state audits.
| Key Industries |
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| Banks |
| Broker Dealer |
| Credit Unions |
| Finance and Securities |
| Healthcare |
| Insurance |
| Manufacturing |
| Mortgage |
| Mutual Fund Companies |
| Retail |
| Services |
| Telecommunications |
| Transfer Agents |
| Service |