This page contains key concepts as to Texas escheatment and unclaimed property laws, including details for unclaimed property reporting & compliance with Texas laws and regulations.
Texas is one of two states to have an escheat reporting deadline in the summer, specifically July 1st, for all holders except life insurance companies (November 1st) Holders have an obligation to report unclaimed property to the state in order to maintain compliance with Texas unclaimed property laws and regulations.
Texas requires holders to perform due diligence mailings for items that are valued at $250 or more. These letters must be sent no later than May 1st (September 1st for life insurance companies) for each reporting year. It is recommended to start due diligence mailings early in each reporting cycle, review when reports are due and plan your mailings accordingly to proactively notify owners and maximize the effectiveness of these campaigns.
Texas, like many states, utilizes unclaimed property audits to measure an organization’s level of compliance and enforce its statutes. According to the Texas unclaimed property law, the Comptroller is authorized to waive the penalty or interest assessed on delinquent property, so long as the holder has made a good faith effort to comply with existing unclaimed property laws.
Holders who have attempted to meet such standards may submit a written request for a voluntary disclosure agreement which will allow the organization to come forward and report past-due property in exchange for a waiver of the penalties and interest often associated with a Texas state unclaimed property audit.
The Texas unclaimed property reporting process can be challenging for holders. Does your organization have questions about state unclaimed property laws and requirements? Click the link below for frequently asked questions regarding unclaimed property reporting and compliance.
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Reporting unclaimed property in Texas can be a stressful process that consumes valuable internal resources. However, when properly managed, the annual reporting and escheatment process need not be a burdensome experience.
Contact Keane to see how we can assist in guiding your organization on the path to unclaimed property compliance. You can also visit our resource library for additional educational and operational resources.