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Unclaimed Property Penalties

Danielle Herring
June 5, 2019

“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. 

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Author

Danielle Herring

In her role as compliance manager for unclaimed property reporting, Danielle Herring oversees support of the product, researches changes in state unclaimed property laws so the system is updated to comply with them, and tests changes to the system before they are released. Danielle also completes some report and letter processing for current clients, assists with their direct support, provides customer training, and helps with troubleshooting and questions about using the product. Outside of work, Danielle loves to garden and is a master gardener.
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