This blog was last updated on April 28, 2022
An important part of unclaimed property compliance is sending due diligence letters. Based on your holder type, each state has a specific time window and dollar threshold above which you need to send them. Not only is this an expectation of the state, but it’s also good customer service. If you are a company who has an opportunity to regain someone’s business, what better way to invite them back than with the promise of money they have forgotten! And, if it’s a one-time situation, sending out letters as prescribed helps you to not be flagged for an audit, which often triggers (you guessed it) even more audits.
Due diligence letters are an easy, effective way to reach out to people and reconnect. Even if it doesn’t result in future business, sending them out in a timely manner will save you time and trouble down the road by helping you to avoid fines and penalties for not being compliant.
Remember, not all states have the same compliance deadlines, and they vary by holder type, so be sure to check what the right timeframe is for your company.
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Get in touch with a Sovos unclaimed property expert to learn more about managing your unclaimed property compliance processes.