As states become more aggressive with abandoned property laws and guidelines, they continue to make changes to legislation in an effort to generate more revenue. On September 30, Tennessee proposed new administrative rules for unclaimed property that if passed will directly affect businesses operating in the state.
The proposed changes apply to Organizations and Individuals Required to Report, Reporting Forms, Alternative Reporting Forms Accepted by the State and Agreements Relative to Unclaimed Property.
Organizations and Individuals Required to Report: The current rule for organizations and individuals states that business employing less than 25 employees do not have to report unclaimed property. The proposed rule would delete this exception making it mandatory for all businesses in the state to report this information.
Reporting Forms: The current rule regarding reporting forms states that if a business holds 20 or more unclaimed property owners, then they must file their report on electronic media. Those reporting less than 20 owners have the option of filing electronically or on paper. The proposed rule would require all unclaimed property reports, regardless of size, to be filed on electronic media unless deemed too costly or oppressive by the state.
Alternative Reporting Forms Accepted by the State: Following suit with the rule above on reporting forms, this proposed guideline would delete the rule stating that a holder of unclaimed property may file an unclaimed property report in a way other than electronically if accepted upon prior written approval of the Treasurer.
Agreements Relative to Unclaimed Property: This proposed rule would aim to delete any internet site that is outdated with information about Tennessee and its unclaimed property program.
The anticipated effective date for these new guidelines is February 28, 2011. Stay tuned to see if they will go into effect.
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