Are You Considering Outsourcing Your Unclaimed Property Processes?

Sherry Hale
September 1, 2017

This blog was last updated on February 23, 2021

Managing an organization’s unclaimed property can be a full-time job. With the complexities of regulatory requirements, the numerous due diligence and dormancy tracking rules by property type and state, along with due diligence requirements, also varying by state, record retention needs in case of an audit, as well as reporting to multiple states, the process of completing the entire escheatment process can be downright daunting to say the least.
Outsourcing can be an effective way to reduce costs and improve efficiency. Some of your strategic and operational activities, such as unclaimed property reporting, are critical to meeting compliance requirements. Here are just a few of the benefits of outsourcing your unclaimed property processes:
  • You do not have to memorize, track, and look up various state legal requirements. Service providers take on the burden of staying current on the constantly changing legislative and legal requirements in all states and jurisdictions.
  • Using your data from source systems, an outsourcing provider should be able to run your data in their own unclaimed property reporting system based on property type, statutory requirements, and other factors to determine and track when that property becomes dormant (old enough to turn over to the state based on determined requirements)
  • When property is considered dormant, an outsourcing provider can perform the required due diligence, following applicable laws, to attempt to reunite the property with its owner(s).
  • Keeping track of and responding to due diligence inquiries with property owners is a critical piece in the due diligence process. Service providers should be able to offer a variety of options, including validation of responses, updating the property history with any returns from the post office, etc.
  • A complete outsourcing provider should be able to do all of your reporting, regardless if you are reporting to one state or multiple states/jurisdictions.
When considering a company to outsource your unclaimed property reporting processes, make sure you select a team of experts having extensive knowledge, a solid and secure reporting system, proven excellent customer service, and that they will complete the process from start to finish. A solid outsourcing provider should be able to help you minimize your reporting exposure and comply with unclaimed property regulations in an accurate and timely manner. They should offer affordable and flexible options that will fit in well with your company’s unclaimed property needs.

Take Action

Get in touch with a Sovos unclaimed property expert to learn more about managing your unclaimed property compliance processes.


Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Sherry Hale

Sherry Hale assists in managing sales and marketing initiatives. Sherry has a degree in Marketing, Business Management, and HR Management from Mount Mercy University in Cedar Rapids, Iowa. In her free time, she loves spending time with family, volunteering with animal rescue, playing with her own rescue pets, and riding her Harley.
Share this post

2025 tax filing season
North America Tax Information Reporting
November 21, 2024
Top 5 FAQs to Prepare for the 2025 Tax Filing Season

This blog was last updated on November 21, 2024 While “spooky season” may be over for most of us, the scariest time of year for many businesses is right around the corner: tax filing season. As they brace themselves for the flood of forms, regulatory updates, and tight deadlines, the fear of missing a critical […]

dtc shipping law updates
North America ShipCompliant
November 13, 2024
DtC Shipping Laws: Key Updates for Alcohol Shippers

This blog was last updated on November 13, 2024 When engaging in direct-to-consumer (DtC) shipping of alcohol, compliance with different state laws is paramount and so keeping up with law changes is critical. In 2024, the rules in several states for DtC have already been adjusted or will change soon. Here is a review of […]

sales tax vs. use taxes
North America Sales & Use Tax
November 8, 2024
Sales Tax vs. Use Tax, Explained. Who Reports What, and When?

This blog was last updated on November 19, 2024 One of the core concepts in sales tax compliance is also one of the most frequently misunderstood: the differences between sales tax and use tax. These tax types may look similar on the surface, but knowing the differences is essential for staying compliant and avoiding costly […]

2025 bond project
North America Tax Information Reporting
November 4, 2024
2025 NAIC Bond Project – The Insurer’s Guide

This blog was last updated on November 14, 2024 The regulatory landscape for insurance companies is undergoing significant changes with the Principles-Based Bond Project which is set to take effect on January 1, 2025. These changes, driven by the National Association of Insurance Commissioners (NAIC), will impact how insurance companies classify and value bond investments, […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
November 1, 2024
VAT in the Digital Age Approved in ECOFIN

This blog was last updated on November 7, 2024 The long-awaited VAT in the Digital Age (ViDA) proposal has been approved by Member States’ Economic and Finance Ministers. On 5 November 2024, during the Economic and Financial Affairs Council (ECOFIN) meeting, Member States unanimously agreed on adopting the ViDA package. This decision marks a major […]