California recently introduced two new questions to their state income tax forms regarding unclaimed property compliance; Has the company ever filed unclaimed property reports with the state of California and if yes, how much? Based on what we know today, we’re anticipating that California will use the information garnered through the responses to identify organizations that may appear to be out of compliance. They may also use this information to help drive participation in a new voluntary compliance program that is currently making its way through the California state legislature.
At this time, we recommend that you review your unclaimed property policies and procedures to confirm that they are comprehensive and reflective of current operations. This will help to ensure that your company is prepared in the event that California conducts an outreach campaign to companies to further gauge compliance. Other states use similar efforts and frequently request copies of an organization’s unclaimed property policies and procedures. Having strong policies and procedures in place helps to demonstrate that a company is in compliance with California’s requirements.
