Service Solutions

Unclaimed Property Solutions

How would you react if a state conducted a "routine" examination of your business, and in the closing conference presented you a bill for amounts stretching back 10-years, plus interest at 12% on all deficiencies and a $25,000 fine to boot?

Unfortunately, states have discovered a new revenue windfall in the 1995 Uniform Unclaimed Property Act and have loaded their arsenals with teams of examiners and outside auditing firms focused on dislodging sizable sums from you.

What’s unclaimed property?

It includes items like uncashed checks, unclaimed dividends, unpaid benefits, account balances, security deposits and unredeemed gift certificates. State law requires you to attempt to find and return these amounts to the rightful owner through a due diligence process, and if unsuccessful, ultimately remit the property value to the particular state in which the owner last resided. Of course, an ever-changing stream of amendments to each state’s unclaimed property reporting documents makes compliance mind numbing and expensive.

Tired of the bad news?

If you have not previously reported unclaimed property or otherwise failed to comply with these reporting statutes, there may be an opportunity to have penalties and interest waived through voluntary disclosure programs. In addition to the monetary savings you’ll realize, this allows you to assess yourself (versus being in a defensive posture after a state audit examination). The compelling benefits of being proactive are too great to ignore for most businesses.

BKD’s State and Local Tax (SALT) professionals have crafted a proprietary diagnostic tool to help you beat punitive levies and get you in compliance. BKD’s diagnostic tool allows you to:

• quantify your unclaimed property exposure
• identify and defend legitimate exclusions
• execute the voluntary disclosure program with state officials
• develop unclaimed property policies and procedures

As one of the 10 largest CPA and advisory firms in the nation, BKD is situated to fulfill the unclaimed property needs of companies like yours. Our dedicated state and local tax practice has been addressing unclaimed property issues since 1995.

For More Information

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