Unclaimed property is tangible or intangible property that becomes dormant (unclaimed) for a specific period of time. Common types of abandoned and unclaimed property include:
- Uncashed checks (payroll, vendor and refund checks)
- Accounts receivable credit balances
- Investments
- Insurance benefits and proceeds
- Bank accounts
- Safe deposit boxes
- Unused gift cards
All states have imposed obligations regarding unclaimed property compliance, such as dormancy periods and audit procedures. After the expiration of the dormancy period, state law requires the holder to escheat, or remit, the unclaimed property to the state that administers the unclaimed property law based on a set of rules established through U.S. Supreme Court case law.
Unclaimed property may not be a tax, but it is a complex compliance obligation that can create significant financial and operational risk. Organizations must satisfy owner outreach requirements, navigate varying state rules and meet strict reporting deadlines. When compliance gaps exist, audits can result in substantial assessments, interest and penalties reaching back many years.
RSM’s abandoned and unclaimed property services help businesses reduce that risk—quantifying and managing exposure, supporting audit response, and keeping you compliant with complex, state-by-state reporting requirements.
