This blog was last updated on October 20, 2020
If you have no new unclaimed property records for a particular state this filing year, does that mean you are off the hook? Well, not necessarily.
Most states want you to file with them each year. If you’ve reported in the past, they want to hear from you even in the years when you have nothing to report.
This rule applies to District of Columbia, Florida, Georgia, Illinois, Kentucky, Massachusetts and a few other states.
Some states don’t have anything in their laws that say you must file a negative report, but they request a negative report as office policy. For example, Arkansas doesn’t require negative reports but they request one if you are located in or do business in Arkansas or you have reported property to them in the past 3 years. Other states that request rather than require the negative report are Arizona, Indiana, New Hampshire, North Dakota, Oklahoma, Pennsylvania, and Vermont.
A few states specify that negative reporting is only required for certain company types. Delaware only has a negative reporting requirement for financial institutions. Maryland has a requirement that utilities, nursing homes, financial institutions, and insurance companies file a negative report. Wisconsin requires a negative report from financial institutions, utility companies, and life insurance companies.
Believe it or not, there are states on the other end of the spectrum. They would rather not receive negative reports as it creates more administrative hassles than it is worth. This is true for Hawaii and Idaho.
Check with your particular state or software vendor to verify you are following the negative reporting rules.
Take Action
Get in touch with a Sovos unclaimed property expert to learn more about managing your unclaimed property compliance processes.