Illinois Unclaimed Property Reporting & Escheat Laws

Escheat reporting deadlines for Illinois vary by property type. Depending on the type of property being reported, the deadline to file an unclaimed property report may take place in either the fall or spring. It is important for organizations to keep up to date with Illinois unclaimed property reporting deadlines to ensure that appropriate property types are filed correctly.

Corporations, investment companies, life insurance companies and utilities companies unclaimed property reports are due April 30. Banking organizations, financial organizations, non-life insurance companies and government holders unclaimed property reports are due October 31.

Early due diligence mailings are recommended in addition to a review of when reports may be due to plan your mailings, proactively notify owners and maximize the effectiveness of each campaign.

Illinois Voluntary Disclosure Agreements

The Illinois Voluntary Disclosure Agreement (VDA) program, operated by the State Treasurer, allows holders with past-due property from prior reporting cycles to come into compliance with the Illinois Uniform Disposition of Unclaimed Property Act. In exchange for those organizations who qualify and complete the Illinois VDA program, the state will forgo the right to assess penalties and interest on past-due property. Holders currently under audit in Illinois are ineligible to enroll in the VDA program. Illinois, like many states, utilizes unclaimed property audits to measure an organization’s level of compliance and enforce its statutes.

Illinois Dormancy Periods

Dormancy periods in Illinois vary by property type. Generally, most property types have a three-year dormancy period.

Accounts are considered dormant if the owner of a property has not indicated any interest in the property or if no contact has been made for the allotted dormancy period for that property type.

Dormancy periods in Illinois for common property types include:

• Wages, Payroll or Salary: One year
• Accounts Payable: Three years
• Refunds Due: Three years

Still confused or overwhelmed? Try the Sovos UP Compliance Hub

Reporting unclaimed property in Illinois, and other jurisdictions, can be a stressful process that consumes valuable internal resources. However, when properly managed, the annual reporting and escheatment process does not need to be a burdensome experience.  

The Sovos UP Compliance Hub is a subscription-based service that includes access to multiple educational and operational resources. Sovos compliance experts continuously monitor and update these resources. Compliance Hub subscriptions can be customized to suit your company’s unique business needs and compliance objectives. Connect with the experts at Sovos today to learn more.