Are You Considering Outsourcing Your Unclaimed Property Processes?

Sherry Hale
October 16, 2019

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 unclaimed property needs.

Take Action

Contact Sovos to learn more about unclaimed property solutions. 

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

North America
June 6, 2024
Observations and Predictions: The Future of Tax and Compliance

When I became the CEO of Sovos one year ago, I knew that I was stepping into an innovative company in an industry primed for a seismic transformation. However, even with this knowledge in place, I must admit that the speed and scope of change over the past year has been extraordinary to witness. Here […]

EMEA IPT
July 18, 2024
The Impact of Climate-Related Events on Insurance Premium Tax (IPT)

Climate related events impact all industries; the insurance industry is no exception. Here’s how it’s affecting Insurance Premium Tax.

EMEA IPT
July 8, 2024
Hungary Insurance Premium Tax (IPT): An Overview

Regarding calculating Insurance Premium Tax (IPT), Hungary is the only country in the EU where the regime uses the so-called sliding scale rate model.

North America ShipCompliant
July 3, 2024
The Prospects and Perils of AI in Beverage Alcohol

I recently had the privilege of speaking on a panel at the National Conference of State Liquor Administrators (NCSLA) Annual Conference, a regular meeting of regulators, attorneys and other members of the beverage alcohol industry to discuss important issues affecting our trade. Alongside Claire Mitchell, of Stoel Rives, and Erlinda Doherty, of Vinicola Consulting, and […]

North America ShipCompliant
June 27, 2024
Shifting Focus: How to Make Wine Country Interesting to Millennials

Guest blog written by Susan DeMatei, President, WineGlass Marketing WineGlass Marketing recently conducted a study to explore how Millennials and Gen X feel about wine, wine culture and wine country. The goal was to gain insight into how we can make wine, wine club and wine country appealing to these new audiences. We’ll showcase in-depth […]

North America Sales & Use Tax
June 24, 2024
Illinois to Adjust Sales Tax Nexus Rules in Light of PetMeds Threat

Illinois is poised to change their sourcing rules again, trying to find their way in a world where states apply their sales tax compliance requirements equally to both in-state and remote sellers. With this tweak, they will effectively equalize the responsibilities of remote sellers with no in-state presence, to those that have an Illinois location. […]