This blog was last updated on July 14, 2022
This blog was updated on July 13, 2022
The National Association of Unclaimed Property Administrator’s (NAUPA) III format for unclaimed property has been in the works for a while now, and the first draft was scheduled to be published on July 5, 2022. Upon checking NAUPA’s website on July 5, 2022, the following message was found:
NAUPA III File Format – National Association of Unclaimed Property Administrators (NAUPA) Timeline Update: Unfortunately, we cannot complete the work at full capacity by the originally agreed upon due date. We were supposed to produce the first draft by July 5, 2022, but due to mitigating circumstances we will require a few additional weeks to deliver. We appreciate your patience and will use this time to provide the best representation of our new format for your review upon approval from the NAUPA Executive Committee.
Sovos will continue to monitor NAUPA’s website for developments.
What is NAUPA III?
The NAUPA Standard Electronic File Format is a standard set of codes that has been widely used to file unclaimed property reports to states in the US since 1990. The current version, NAUPA II Format, has been used for the past 18 years and is adopted by all 50 states—making electronic reporting more uniform.
However, now NAUPA III is underway.
What format will NAUPA III be in?
NAUPA III will probably take XML format. This will enable states to easily add elements and have customized content according to the different state laws and requirements.
Why do I need to use NAUPA III?
Owners and holders will reap the benefits of flexibility from NAUPA III. For example, unclaimed property owners will have a higher probability to claim owed property if the report can include owners’ non-standard addresses or additional identifying information, such as driver’s license information. Multiple deductions will be available on one property according to new IRS and IRA rules.
What is the difference between NAUPA II and NAUPA III?
When the new format is released, you’ll need to learn and adapt to it. And, fortunately, you will have plenty of time. NAUPA III is currently in the programming phase and will have external corrective feedback, NAUPA formal adoption and communication with states before being released.
If Sovos is your unclaimed property software vendor, you will have less of a burden because we will keep up with the changes and make sure your reports meet states’ requirements. If you are not a current Sovos client or if you don’t currently have a software vendor, make sure to pay attention to states’ websites, the NAUPA website and any other resources available online. The more you research, the less likely you are to make mistakes.
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Get in touch with a Sovos unclaimed property expert to learn more about managing your unclaimed property compliance processes.
