Compliance, Legislative Alerts, Legislative Updates
The introduction of the 2016 Revised Uniform Unclaimed Property Act (RUUPA) by the Uniform Law Commission has prompted state legislatures to review their often antiquated unclaimed property laws, and in many cases introduce legislation to amend or wholly revise these laws. In addition to RUUPA, state legislators may now also refer to the American Bar […]
Eton Corporation and Fruit of the Loom (along with related entities) are the latest companies to have filed suit against Delaware in federal court[1], alleging that the state violated their constitution rights in connection with the state’s estimation methodology used in unclaimed property audits by its contingency fee auditors. These back-to-back lawsuits filed on December […]
On December 20, 2019, President Trump signed into law the SECURE Act (“Setting Every Community Up for Retirement Enhancement Act”) as part of the government’s spending bill. Two important provisions in the SECURE Act will affect the unclaimed property reporting of retirement accounts, and will be effective on January 1, 2020: The age for required […]
Escheat Audits, Litigation, Unclaimed Property Audit
On December 9, 2019, AT&T filed a lawsuit against the state in Delaware federal court, AT&T v. Geisenberger[1], alleging that certain document requests issued by Kelmar, acting as the state’s third party contingent fee auditor, made in connection with an unclaimed property audit that began in 2012, violate the company’s Fourth, Fifth and Fourteenth Amendment […]
Compliance, Escheat Law, Unclaimed Property Law
Since its release in May 2018, IRS Revenue Ruling 2018-17[1] has raised significant legal and operational concerns for holders. Under the Ruling, the escheatment of an IRA to the state constitutes a designated distribution, subject to a 10% federal tax withholding. The trustee or custodian of the IRA must also report the designated distribution on a […]
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