Small-business compliance with unclaimed property laws, known as escheat laws, isn't usually at the top of the list of most owners' concerns. But failing to address unclaimed property can lead to audits, interest and penalties. When a customer leaves a deposit and never returns, or you issue a refund to clients via check that they never cash, you can’t just keep the money. Escheat laws require you to report that money and turn it over to the state for safekeeping until the rightful owner attempts to claim it.
The following states have upcoming unclaimed property report filing deadlines:
- Delaware: March 1
- New York: March 10
- Connecticut: March 28
- Pennsylvania: April 15
- Florida: April 30
- Vermont: May 1
- Michigan: July 1
- Texas: July 1
If your company has never filed unclaimed property reports, don’t just send in a report this spring. It's best to consult with a credible unclaimed property consulting firm to ensure you don’t open your company up to an audit, which could lead to interest and penalties. After filing for the first time, future reports should be straightforward.
Read the full article at the JMS Advisory Group blog.
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