Texas Escheat & Unclaimed Property Laws

Texas is one of two states to have an escheat reporting deadline in the summer, specifically July 1st, for all holders. Holders have an obligation to report unclaimed property to the state in order to maintain compliance with Texas unclaimed property laws and regulations.

Texas requires holders to perform due diligence mailings for items that are valued at $250 or more. These letters must be sent no later than May 1 for each reporting year. It is recommended to start due diligence mailings early in each reporting cycle, review when reports are due and plan your mailings accordingly to proactively notify owners and maximize the effectiveness of these campaigns.

Texas Voluntary Disclosure Agreements

Texas, like many states, utilizes unclaimed property audits to measure an organization’s level of compliance and enforce its statutes. According to the Texas unclaimed property law, the Comptroller is authorized to waive the penalty or interest assessed on delinquent property, so long as the holder has made a good faith effort to comply with existing unclaimed property laws.

Holders may submit a written request for a voluntary disclosure agreement which will allow the organization to come forward and report past-due property in exchange for a waiver of the penalties and interest often associated with a Texas state unclaimed property audit.

Still confused or overwhelmed? Try the Sovos UP Compliance Hub 

Reporting unclaimed property in Texas, 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.