“We have less than $1,000 to submit, we’ll just do it ourselves.” Does this thought process sound familiar? The thought is if it’s a small amount, it doesn’t matter nearly as much. It’s totally understandable for one to think along these lines. Unfortunately, the states may disagree with you. Regardless of the dollar amount or number of records, you still have to track and comply with each state’s filing requirements. That’s where things can become complex.
For example, a company that shall remain nameless recently had to file to the state of New Mexico for the first time. They were late in their filing because they didn’t realize that New Mexico had a different filing due date from what they were accustomed to. They had less than $2,000 to escheat, not a big deal right? Wrong. They were flagged as a delinquent taxpayer and were forced to pay penalties with interest. The total amount due was just over $5,000.
This is not to say this will happen to every organization, however it most definitely could happen. It would be beneficial to do your homework and make sure you’re compliant. Obtaining assistance by licensing a reliable unclaimed property software would be a great way to start or you could outsource the hassle entirely.
Learn more about Sovos unclaimed property compliance solutions.