Keane's Unclaimed Property Blog

Unclaimed Property Reporting Best Practices

Unclaimed Property Reporting Best Practices

With escheat reporting being a year-round process, we wanted to share some unclaimed property reporting best practices to help keep your company in compliance.

For even more information about unclaimed property reporting and compliance, watch the on-demand replay of our latest webinar which highlights:

    • Unclaimed Property Reporting Best Practices
    • Tips for Success During the Spring & Fall Escheat Seasons
    • The Current Unclaimed Property Audit & Enforcement Landscape
    • Impactful Legislative & Regulatory Changes

Preview the webinar:


Watch the full on-demand webinar >>

Don’t Rely On Reciprocal Reporting For Unclaimed Property

Some states over history have allowed holders to send property to that state under the presumption that they will forward it to the state that it should be remitted to. It’s a practice that has been wildly disavowed by most jurisdictions. It’s a procedure that we would recommend that you abandon at this point.

Review Any Legislative Changes For Your Reporting Jurisdictions

Keep in mind all your statutory time frames for due diligence. Ensure that you have the most up to date reporting information. The states are constantly changing legislation, constantly changing dormancy periods. It’s really tough to track and keep up to date with. To help stay up to date, subscribe to Keane’s Free Legislative Alerts.

Review ALL Sources Of Unclaimed Property

It is very important to ensure that different groups in your company are contributing and properly tracking unclaimed property. While certainly one of the most prevalent, don’t just focus on Accounts Payable. Be inclusive of all the property types and the departments that may handle those property types.

If You’ve Been Through a Merger, Be Cautious

We see a tremendous amount of liability that results from mergers and acquisitions. If you’ve acquired a company it’s possible you’ve acquired a liability because the company was not filing unclaimed property.

Make Sure Third Party Software Is Up To Date

If you’re using a third party software to help you with unclaimed property reporting, you’ve got to be sure that the data is up to date and the patches are consistent. Failure to apply patches or update files may result in your software incorrectly determining dormancy rules.

Retain All Your Records

One of the best defenses against an audit is the presence of records and previous unclaimed property filings. We certainly would recommend that you have a very long, if not indefinite record retention policy.

Conclusion

Holders can apply these unclaimed property reporting best practices during any cycle, spring or fall.

The escheat reporting process has year-round obligations that can often cause an unnecessary strain on the finance, tax, and accounting departments within an organization – especially those without a department or team dedicated to unclaimed property compliance. Our fully outsourced compliance solution helps businesses of all shapes and sizes make sense of the complex escheat reporting process, simplifying it in the process.

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