Unclaimed Property Reporting Season Review

This blog was updated on November 8, 2022.

Congratulations, you made it through the busy October unclaimed property reporting season. Now what? Sure, you may like to forget about unclaimed property until the next reporting season comes along but that isn’t the best practice as unclaimed property compliance is a year-round job. Perform a review on your recent filing season using the below questions:

1. Did you file according to current state unclaimed property laws? Throughout 2022 there have been many updates to state unclaimed property laws that impact compliance, including dormancy criteria, due diligence requirements, reporting methods and more. In addition to laws changes, states are constantly updating details in their unclaimed property handbook.
2. Did you file unclaimed property reports for all applicable property types? There are over 100 property types to be considered. 
3. Did you file unclaimed property reports to the correct jurisdictions? Per the rules of jurisdiction, the state of the owner’s last known address has first claim to unclaimed property.
4. Do you know that certain states require due diligence mailings to occur well before escheatment deadlines? Your early spring letters should be mailed before the new year.

If you’re uncertain about any of the above, it’s time to seek help. In the meantime, we have some helpful hints to prepare for the next reporting season:

1. Stay on top of changing rules and regulations: Consider a partner or web-based automation tool with compliance intelligence and comprehensive audit tracking capabilities.
2. Take an inventory of dormant property: Now is a good time to do your homework. Review the types of properties that your organization could be holding and make sure you are reporting all property types. States are constantly expanding the scope of reportable properties, such as virtual currency. There have been several states that have changed filing deadlines over the past year, shifting from a fall filing to a spring filing.
3. Review your policies and procedures and document them: Add organization to your compliance process and avoid exposing your business to risk.
4. Perform a cost benefit analysis: If you are managing this work internally, what is the cost? Would it make sense to consider an unclaimed property provider? 

Don’t let stress related to next year’s reporting season overwhelm you. Lean on Sovos. There are quite a few ways in which Sovos can alleviate the pressure that comes with annual reporting. Our team and compliance solutions can assist you with one piece of the puzzle or manage the process for you entirely. Here are just a few solutions we provide our clients:

• Unclaimed Property Software
• Unclaimed Property Managed Services
• Consulting Services
• Due Diligence Mailings
• Reporting and Escheatment
• Sign and Remit to the States
• Compliance Hub