Fifty-four U.S. jurisdictions and many foreign countries have enacted abandoned or unclaimed property (also known as escheat) laws. Companies are often unaware of these laws or may only be partially complying with them. As a result, many companies have no idea that they are annually creating or adding to an abandoned or unclaimed property (AUP) exposure.
Triggers for AUP Exposure
- Failure to file annual AUP reports in state of incorporation or any state with customers, vendors, employees, etc.
- Merger and acquisition activity
- Failure to report all applicable types of property
- Accounting system conversions
- Stale credit balances in "target" accounts such as A/R
- Little or not record retention beyond seven years
- History of stale, dated, uncashed checks
- Balance sheet clean ups to P&L
CBIZ’s Abandoned and Unclaimed Property group helps you reduce your risk of AUP exposure. We work with companies to implement best practices to manage gift certificates, consumer rebate programs, uncashed checks, dividend payments, inactive bank accounts and other common forms of abandoned property. Other services we provide include:
- Management of the voluntary disclosure filing process for companies with reporting deficiencies, including all correspondence with the state, the drafting of voluntary disclosure agreements and amnesty filings, anonymous inquiries, and negotiations regarding extrapolation methodologies for years in which no information exists.
- Management of and/or assistance with unclaimed property audits conducted by states or their third-party contract auditors.
- Monitoring of legislative and reporting trends and advisement on business practices with regard to gift certificates, gift cards, re-loadable stored value cards and electronic codes.
- Review of rebate service agreements and advisement on escheat issues related to consumer rebate programs.
- Review of accounting and treasury practices and entity structures when related entities are domiciled in different jurisdictions to identify the holder and address successor liability issues.
- Analysis of foreign escheat requirements and advisement on the escheat of foreign property held by U.S. corporations.
- Preparation and filing of annual unclaimed property reports.
With CBIZ, you receive a hands-on approach to every engagement. Our professionals draw from a deep pool of national and international resources to implement the solutions that reduce your AUP risk and exposure. Discover the commitment to quality service and competitive pricing that has made us one of the top ten accounting firms in the nation.