12 Reasons Companies may be selected for Unclaimed Property Audits

Blog Post by Moyer & Osibodu

1. Operating within a target industry, such as life insurance, title insurance, oil & gas, retail, manufacturing, pharmaceutical, healthcare, securities and financial services.

2. Incorporating in certain states, such as Delaware, New York, Florida, Michigan, California and Texas.

3. Failing to file annual unclaimed property reports to the respective jurisdictions, especially to the company’s state of incorporation. In other words, lack of unclaimed property reporting or compliance history with the state.

4. Failing to report all categories of unclaimed property, especially those common to the company’s industry. For example, reporting only checks and omitting accounts receivable credit balances.

5. Filing negative (i.e. zero) reports in place of reporting past due unclaimed property.

6. Failing to comply with the states’ due diligence requirements.

7. Understating the company’s unclaimed property disclosed during voluntary disclosure programs and settlements.

8. Ignoring states’ outreach letters or notices reminding companies about their unclaimed property compliance obligation.

9. Filing claims to recover unclaimed property from the states without reporting past due unclaimed property or filing annual reports to the states.

10. Omitting relevant information required on the states’ unclaimed property reports.

11. Merging or acquiring other companies, especially in certain industries.

12. Falling victim to a Whistleblower or disgruntled employee lawsuit.