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Unclaimed property compliance is one of those legal obligations that often flies under the radar for many businesses, especially smaller ones. However, failing to stay compliant can quickly turn minor oversights into major liabilities. In many cases, the penalties far exceed the value of the property itself, making it essential for every business—big or small—to […]

By Freda Pepper, General Counsel, Unclaimed Property The Supreme Court of the United States rarely addresses unclaimed property law, which made its ruling against Delaware in the 2023 MoneyGram litigation particularly noteworthy. The case focused on the escheatment of MoneyGram checks and similar written instruments. Following months of negotiations, a final settlement was reached on […]

Unclaimed property compliance is often overlooked by small businesses, with many mistakenly thinking it only applies to large corporations. But this misconception can lead to serious financial and legal trouble. All businesses, no matter their size, must follow the same state regulations when it comes to unclaimed property. This comprehensive guide to unclaimed property was […]

Delaware recently released the second round of Verified Report requests by mail addressed to the Tax/Escheat Departments with the subject line Notice Requesting Verified Reports for Report Year 2023*. All companies should be on the lookout for the Notice, even if your organization was audited by Delaware or completed the Voluntary Disclosure program in the […]

Managing compliance with unclaimed property has become challenging due to the constantly changing legislative environment. A recent obligation gaining traction among states, which companies must be mindful of, is the requirement to conduct outreach to owners before their property is considered abandoned. This obligation, referred to as “pre-presumption outreach,” stems from the enactment of the […]

Building and maintaining a program to ensure compliance with the ever-changing unclaimed property laws is challenging, costly and time consuming. As a result, many companies put off or delay coming into compliance or do not put enough resources into creating a robust program. Those delays, erratic reporting and even ignorance that unclaimed property laws exist […]

The unclaimed property (UP) community will convene in Las Vegas starting Sunday, March 10 for the 2024 Unclaimed Property Professionals Organization (UPPO) Annual Conference. Running until Wednesday, March 13, approximately 600 people will descend upon the Planet Hollywood hotel for three and a half days of learning, networking and sharing of ideas. According to UPPO, […]

Delaware’s Secretary of State (SOS) recently advised that they plan to send invitations to companies to participate in the Delaware Voluntary Disclosure Agreement (VDA) program November 15, 2024. This is the second wave of invitations for 2024. In the event that a company receives an invitation to participate in the VDA program and is interested […]

November 2023 saw a sharp increase in the number of Notices Requesting Verified Reports for Report Year 2022 being issued by Delaware. After further research, Sovos learned that Delaware recently contracted four third-party audit firms (Kelmar, Specialty Audit Services, Discovery Audit Services, and Escheatment Experts Consulting Services) to perform the review functions related to the […]

Another October unclaimed property filing season is now over for both clients and Sovos. Overall, 70% of reports filed by Sovos on behalf of our clients occur for states with deadlines on October 31 and November 1. The last 60 days of the filing period require significant coordination between our clients and Sovos. Many tasks, […]

For the third time in four years, Nevada has amended its unclaimed property law. Indeed, Assembly Bill 55 was enacted in Nevada on June 2, 2023, and became effective July 1, 2023. The new law impacts the analysis of when certain property types are presumed abandoned. Further, a new certified mailing requirement is added for […]

In an interesting development, New York has requested that companies hold off on reporting unclaimed virtual currency this year. This news comes in the wake of a newly enacted law requiring holders to report and remit unclaimed virtual currency owned by New York residents. Virtual currency is the latest property type to become a target of […]

It’s that time of year when we all begin focusing on fall unclaimed property (UP) filings. For anyone who has experience with UP filings, you have all had to cope with change during a filing season. The catalyst to change can appear in many forms, such as statutory changes to dormancy or filing dates, a […]

In the world of unclaimed property, there tend to be more questions than answers with certain property types and what should be considered reportable to the states. High on that list are rebates, refunds and incentives. While efforts have been made to help clear the fog, questions still abound as companies seek to improve customer […]

Unclaimed property is ripe for potential fraud due to the nature of the property – after all, it is either lost or abandoned and nobody will know that it is missing. Unclaimed property fraud can occur at both the holder and state levels. It can be perpetrated internally by employees or externally by people posing as […]

Unclaimed property compliance can be difficult and overwhelming. Clients often ask what they should be doing to ensure they are compliant with the various laws and regulations. It isn’t easy, especially if you have multiple property types such as checks, credits or customer accounts that have the potential to become unclaimed property in multiple states. […]

The chorus to “California, Here I come,” a popular showtune from the Great American Songbook, starts with the lyrics, “California Here I come, right back where I started from.” For holders trying to stay on top of their California unclaimed property reports, it sometimes feels like a piece of musical déjà vu. Wait, didn’t we […]

Oftentimes, small companies hold unclaimed property without realizing it, mistakenly assuming only mid-sized and large companies have the potential to generate it. In fact, many are not aware that such liabilities even exist. If small businesses do have some awareness, they do not fully understand the numerous responsibilities concerning unclaimed property and the consequences for […]