Iowa Escheat & Unclaimed Property Laws

Iowa has a fall deadline for annual reporting and remittance. Holders of unclaimed property must report and remit on or before October 31. Holders of unclaimed demutualization proceeds are to report by April 30. Early reporting is permitted with prior approval from the unclaimed property division. Negative reports are not required by Iowa.

All holders have an obligation to report abandoned or unclaimed property to the state in order to maintain compliance with Iowa’s unclaimed property laws and regulations. Holders reporting to Iowa are required to submit their reports electronically via the state’s website.

Iowa Due Diligence Requirements

Iowa requires holders to send due diligence notifications for any property with a value of $50 or more.

Holders must send due diligence letters each reporting cycle to the apparent owner at the last known address and provide at least 30 days for the owner to respond.

This notice should inform the owner that the holder is in possession of unclaimed property that will be turned over to the state unless the owner claims it from the holder before the report is filed.

Iowa Dormancy Periods

Dormancy periods in Iowa 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 Iowa for common property types include:

• Wages, Payroll or Salary: One year
• Traveler’s Checks: Fifteen years
• Refunds Due: Three years

Still confused or overwhelmed? Try the Sovos UP Compliance Hub

Reporting unclaimed property in Iowa, 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.