What is unclaimed property compliance and who has to file?

Unclaimed property compliance is the process of identifying, reporting, and remitting property that belongs to someone else but has been left unused, forgotten, or inactive for a certain period of time. It’s also called escheat compliance.

Common types of unclaimed property

• Uncashed payroll checks
• Vendor overpayments or credits
• Customer refunds
• Dormant bank accounts
• Unused gift cards or stored-value balances
• Unclaimed securities/dividends
• Outstanding utility deposits
• Unredeemed cashier’s checks

What compliance usually involves

1. Reviewing records to find dormant or stale items.
2. Contacting owners when required by law.
3. Due diligence notices to try to return property.
4. Filing reports with the state.
5. Remitting the property to the appropriate state agency.

Who has to file?

Generally, businesses and organizations that hold property belonging to others must file unclaimed property reports if they meet a state’s filing requirements. This can include:

• Corporations
• LLCs
• Partnerships
• Banks and credit unions
• Insurance companies
• Brokerage firms
• Utilities
• Schools, hospitals, and nonprofits in some cases
• Payroll processors or other holders of funds on behalf of others

Important note

Filing requirements depend on:

• The type of property
• How long it has been inactive
• The state’s laws
• Whether you are the “holder” of the property

Some states require filing even if you have no unclaimed property during the reporting period, while others only require filing when you do have reportable property.

If you want, I can also explain:

• how to know if your business is a holder
• common dormancy periods by property type
• the annual filing process step by step