image: BP blast header

Greetings! 


Contact Us
President
425.289.7600

President of Wealth Management and Consulting
425.289.7601

 
Directors:
 
Assurance Services
425.289.7608

Tax Services
425.289.7612

Allan Vander Hamm
Business Transition and Valuation Services
425.289.7613 

Forensic, Litigation and Investigation Services
425.289.7617
  
Gary Holcomb  
Fiduciary Services
425.289.7636
State and Local Tax (SALT) Services
425.289.7609

toll free: 800.876.6931
Join Our Mailing List

Several States' Unclaimed Property Reports Due November 1st, 2011

 

While unclaimed property is not a tax, the requirement to remit unclaimed items to the states has become a focus during these hard economic times. Revisions to the abandonment periods and expansions to the definition of what constitutes unclaimed property have led to challenges in reporting. In addition, states have increased their audits of businesses that do not report and the look-back period can be up to 25 years. 

  

Unclaimed, or abandoned, property consists of property held during the course of business that the owner has not claimed for a certain period of time. This usually includes items such as uncashed vendor and payroll checks, accounts receivable credit balances, gift cards and certificates, customer refunds and contents of safe deposit boxes. Recently, states have also focused on unclaimed employee benefits and situations where companies have received goods but not been billed for the items (unbilled payables). Abandonment periods can range from 1 year to 15 years depending on the particular item.

 

Normally, a business is required to perform due diligence in trying to locate the owner of abandoned property. This includes sending a letter to the owner's last known address. If no response is received, the item is remitted to the state of the individual's last known address. If no address is known, the item is remitted to the state where the business is located. Due to these provisions, a company may need to file in more than one state.

 

Reporting for most states is now done electronically with the use of a NAUPA (National Association of Unclaimed Property Administrators) format. Items are often aggregated into categories for ease of reporting. Proper record keeping is important to identify items that have been reported and those that are being held until the abandonment period is met.

 

Washington, Oregon, Idaho, California and several other states require filings by November 1st. Additional information is available in each state's unclaimed property website or you may contact Chris Laine, State and Local Tax Director, at claine@bpcpa.com or (425) 289-7609 for assistance.  

 

  

 

 

 

 

 

 

 

 

 
image: Berntson Porter & Company logo
 
425.454.7990     fax: 425.454.7742
image: Copywright 2010 Berntson Porter & Company, PLLC
Thank you for subscribing to BP Blast. Berntson Porter & Company will never sell or share your email address with anyone.
 
In accordance with applicable professional regulations please understand that any written advice contained in, forwarded with, or attached to this email is not intended or written by Berntson Porter & Company, PLLC to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code.