Recently, Keane noticed an uptick in unclaimed property audits initiated by the state of Massachusetts. We wanted to bring this to the attention of holders incorporated in Massachusetts, as well as those with a physical presence in the state, so that proactive measures can be considered. Proactive measures would include conducting an internal risk assessment to identify potential unclaimed property exposures. If past due property is identified, companies may also want to consider participating in the Massachusetts Voluntary Disclosure program.
Completing the Massachusetts VDA process provides relief from interest and penalties and may defer the initiation of an audit. Once an audit firm, such as Kelmar, initiates an audit on behalf of one State, they often expand to include other States as well. Entering into the VDA program helps to ensure that the engagement is limited to the state of Massachusetts.
Massachusetts Unclaimed Property Information:
- Reporting deadline is November 1st, except for life insurance companies, and companies holding unclaimed proceeds from the demutualization or related reorganization of a life insurance company, who must file before May 1st.
- Property over $100 must have a due diligence mailing sent at least 60 days prior to filing the unclaimed property report.
- Massachusetts’ look back period is nine (9) years (six (6) years plus the dormancy period).