Major Updates Included in NAUPA III Format Release

Freda Pepper
December 21, 2022

This blog was last updated on December 21, 2022

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 created to make electronic reporting more uniform.”

The NAUPA Standard Electronic File Format is a standard set of codes that has been widely used to file unclaimed property reports to U.S. states since 1990, with every state having adopted the NAUPA II Format.

As suspected, the proposed NAUPA III has not only added new data elements and property codes but has moved from the fixed width format to Extensible Markup Language (XML). NAUPA believes that XML provides a more flexible architecture for reporting, minimizing mistakes and maximizing accurate reporting. Further, existing property codes have been radically changed. Some have been removed, others expanded, and all are transitioned from four digit to five-digit codes.

NAUPA III will bring greater flexibility to UP owners and holders. For example, there will be a greater chance for UP owners to claim owed property if owners’ non-standard addresses or additional identifying information (e.g., driver’s license information) can be included in the report.

“The existing property codes have been extensively reviewed to create a more uniform, streamlined system,” NAUPA states on its website. “We’re seeking feedback from stakeholders on the proposed property code changes, and to review the descriptions for completeness and clarity.”

There will be a transition period to NAUPA III and “will co-exist with NAUPA II during transition to the new format,” according to NAUPA. Sovos predicts that holders will potentially be able to start utilizing the new format on an optional basis in the fall of 2023.  NAUPA has not yet specifically stated when NAUPA III will be mandated, but it could be required by the fall of 2024.

The proposal specifically invites feedback from stakeholders. Comments, thoughts and suggestions can be submitted by February 28, 2023. To do so, interested parties can visit here.

Sovos will continue to monitor for developments.

Take Action

Still have questions about NAUPA and unclaimed property? Reach out to the Sovos team for more information.

Sign up for Email Updates

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

Author

Freda Pepper

Share this post

Hungary Supplemental Insurance Premium Tax
EMEA IPT
July 11, 2022
Extra Profit Tax: An Introduction to Supplemental IPT in Hungary

This blog was last updated on October 28, 2024 Update 7 October 2024 by Edit Buliczka Hungarian Tax Office Updates IPT Declaration Form for 2023 The procedure necessary to correct an underdeclared premium figure in Hungary can be complicated. The complexity of a correction for return form 2320 has become even more challenging. Following a […]

sales tax vs. use taxes
North America Sales & Use Tax
November 8, 2024
Demystifying Tax Types: Sales Tax vs. Seller’s Use Tax vs. Consumer’s Use Tax

This blog was last updated on November 8, 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
The Insurer’s Guide to the 2025 Bond Project

This blog was last updated on November 4, 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 […]

what is peppol
E-Invoicing Compliance North America
October 29, 2024
What it is PEPPOL?

This blog was last updated on October 29, 2024 Peppol E-invoicing explained: What it is and how it works The global adoption of electronic invoicing is accelerating. Governments worldwide are pushing to adopt e-invoicing to digitally transform their national systems and, often, to close the VAT gap. While many countries have introduced their own e-invoicing […]

remote sellers sales tax
North America Sales & Use Tax
October 28, 2024
Will Congress Act to Simplify Remote Seller Sales Tax Collection

This blog was last updated on November 5, 2024 When the United States Supreme Court ruled in 2018, that South Dakota’s law imposing sales tax collection requirements on sellers without in-state physical presence was constitutional, it did not grant states free reign. States are still responsible for ensuring that their sales tax requirements are manageable, […]