When a property goes unclaimed, the state holds the money or property for varying amounts of time depending upon the type of property to allow time for the rightful owners to come forth and claim it. Unclaimed property may include inactive bank accounts, overpayments on receivables, uncashed payroll checks, and abandoned safe-deposit boxes.
When no one claims the property after the appropriate waiting time, ownership of the money and/or property reverts to the state. If your business has unclaimed property, you are required to perform due diligence in trying to contact the owner. If the property remains unclaimed, you may be required to file a return once a year and submit the unclaimed property to the state.
At PM Business advisors our experts understand the variable and complex state laws surrounding unclaimed property and will help you navigate the holding periods and reporting procedures for each state, so you can avoid paying hefty penalty fees.