California contacts businesses for unclaimed property compliance program

California unclaimed property outreach

The California State Controller’s Office (SCO) is launching a new outreach initiative aimed at educating holders about their unclaimed property compliance obligations and promoting California’s Voluntary Compliance Program (VCP). The VCP, which was enacted in 2022 (Assembly Bill 2280) and initiated in 2023, allows eligible holders of unclaimed property to come forward voluntarily and report and remit past due property without the assessment of penalties and the 12% interest rate normally imposed on untimely reported, paid or delivered unclaimed property. Please read our tax alert, California to allow unclaimed property voluntary compliance program, for more information about the program and the eligibility requirements.

As part of the new outreach, the state has indicated that it will be sending letters to approximately 4,000 businesses beginning in November. Additional mailings are planned in 2026 as the state works to expand unclaimed property education and knowledge of the VCP to the business community.

Businesses with questions about the California VCP, or seeking to evaluate whether to apply to the program, should reach out to their unclaimed property advisers. For more information about RSM US’s unclaimed property services or further insights, visit the RSM Unclaimed Property page.