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When most businesses think of unclaimed property, they likely consider outstanding checks issued from primary operating accounts, overlooking other sources that may hold potential exposure. Failure to recognize these exposures could result in significant interest and penalty assessments once discovered. Some of the most overlooked sources of potential unclaimed property include the following: Voided checks […]

Unclaimed property is generally defined as a fixed and certain interest in intangible property that is held, issued or owed in the course of a holder’s business that has gone unclaimed for a specific period of time (the dormancy period) by the rightful owner. At its most basic level, unclaimed property laws are intended to […]

The California Voluntary Compliance Program (VCP) is now available, according to an announcement from the California State Controller. For the first time, we are hearing from the State Controller’s Office (SCO) regarding the VCP authorized by the California legislature in September 2022. The announcement on the SCO’s website provides guidance concerning the upcoming program and […]

In our recent blog, “California – One Step Closer to a Voluntary Disclosure Program,” Freda Pepper outlined everything we currently know about the program, including who will be eligible to participate, a requirement to complete an education program, timeline requirements and, most importantly, the benefits related to completing the program. While there’s a lot that […]

The Supreme Court has issued its decision in Delaware v. Pennsylvania and Wisconsin, and Arkansas v. Delaware (the MoneyGram litigation). It is the Court’s opinion that Agent Checks and Teller’s Checks (check instruments) issued by MoneyGram are similar to “money orders and other similar instruments” and should be escheated according to federal law. As a […]

The unclaimed property (UP) community will convene in Nashville starting Sunday, March 12 for the 2023 Unclaimed Property Professionals Organization (UPPO) annual conference. Approximately 600 people will descend upon the Nashville Renaissance Hotel for three and a half days of learning, networking and sharing of ideas. According to UPPO, the “conference integrates networking and premier […]

Artificial Intelligence (AI) is not a new topic, but with the recent launch of ChatGPT – an AI chatbot – every day internet users now have access to the technology. This had us thinking: what would ChatGPT have to say about outsourcing unclaimed property obligations? We asked the chatbot, “What are the benefits of outsourcing […]

On September 13, 2022, California Governor Gavin Newsom signed AB 2280 into law, paving the way for the creation of a long-awaited Voluntary Compliance Program (VDA Program). However, before such a program can be implemented, two things must take place. First, the California legislature must approve funding for the program by way of an appropriation in […]

Unclaimed property is often misunderstood. Despite their best intentions, we find that many companies operate under factually inaccurate assumptions that could put their business at risk. We’ve outlined some of the top myths and misconceptions around unclaimed property to help you stay compliant. Unclaimed property reporting is optional Filing unclaimed property is not an option. […]

The National Association of Unclaimed Property Administrators (NAUPA) has finally published its long-anticipated draft of the proposed NAUPA III file format after a delay of the anticipated July 5, 2022 release. The 62-page draft includes sweeping changes and represents a major update to the current NAUPA II format. According to NAUPA, “the new version has been […]

States continue to enforce unclaimed property (UP) compliance. UP is broadly defined as any property held by companies in which the owner is lost and/or there has been no customer-generated activity for a statutorily mandated period of time, known as the dormancy period. Research conducted by Sovos found that there is nearly $77 billion in […]

By: Laurie Andrews and Paola Narez  Picture this: you just completed a risk assessment on your unclaimed property processes, and you feel like you have this whole unclaimed property thing figured out. You enhanced your systems to make sure you are reviewing every property type and analyzing it the right way, but you have discovered a […]

Part I of II – written by Wendy Walker Click here to read part I of the series. This quarterly blog series focuses on tax information reporting (TIR) and unclaimed property (UP) issues impacting businesses facilitating transactions involving digital assets. Each quarter, Sovos experts will provide updates and reminders on tax and UP issues in advance […]

Mergers and acquisitions (M&A) have always been inherent in the financial institution landscape but have recently increased at an unprecedented pace. A recent Fortune.com article indicated a whopping $2.4 trillion in M&A deals in 2021, up 158% from last year. In February 2022, the FDIC prioritized policy updates to the 25-year-old Bank Merger Act in […]

This blog was updated on March 24, 2023 Did you know that approximately one in 10 people have unclaimed property (UP) in their name? Research conducted by Sovos found that there is upwards of $77 billion in UP assets currently in the United States. As states crack down to close the estimated $600 billion tax […]

West Virginia’s governor signed WV HB 4511 into law on March 28, 2022. The newly enacted law includes significant changes to West Virginia’s unclaimed property. The provisions of this bill will become effective June 10, 2022, which is 90 days after its passage by the legislature. The changes are as follows: Electronic Mail: The definition […]

Despite the reputation of being a “once a year” thing, tax information reporting and withholding is a year-round organizational compliance process. Add unclaimed property (UP) obligations and crypto tax compliance to the monthly to-do list, and businesses have a lot of compliance obligations to prepare for – all throughout the year. This quarterly blog series […]

On February 16, 2022, California introduced AB 2280, allowing the California Controller to establish a California Voluntary Compliance Program (VDA Program). This is a significant development as California has long declined to provide a formal or informal unclaimed property voluntary disclosure agreement (VDA) program, despite automatically assessing 12% interest on late reported property. In the […]