Client Profile
| Industry: | Retail | | Annual Revenue: | >$100 nillion | | Geographic Footprint: | International | | Ownership Structure: | Foreign-Owned Private | |
Issue
A retailer discovered it had unaddressed abandoned/unclaimed property (AUP) liabilities after it received an audit warning letter from the state of New York. Subsequent review indicated additional liabilities in other states.
Solution
Our team worked closely with the retailer to identify and evaluate AUP exposure areas. We examined the company’s accounts payable and receivable, unapplied cash, gift cards, and other common sources of AUP, which resulted in a potential unaddressed liability of $620,000.
To help the retailer resolve liabilities and mitigate penalties for its noncompliance, we initiated voluntary disclosure programs in multiple states, including New York and Delaware, arguably two of the most complex programs. We also helped bring the company into compliance with its AUP reporting obligations to minimize the risk of future exposure.
Outcome
Proactively addressing the identified AUP liabilities reduced the original $620,000 estimate to $110,000. We also eliminated all related penalties. Furthermore, the company successfully avoided an arduous audit process and substantially larger assessments that likely would have followed.
Proactive Against Penalty
Discover how our AUP team can reduce your exposure before you face scrutiny from state regulators.
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