Unclaimed Property Compliance: The Compliance Risk Hiding in Plain Sight

A vendor check issued years ago that was never cashed. A customer overpayment that was never refunded. An employee’s final paycheck returned as undeliverable. Each of these can become reportable as unclaimed property, triggering compliance responsibilities.

Unclaimed property reporting and remittance obligations (also known as escheatment) span all 50 states and four U.S. territories, yet they often receive less attention than other compliance priorities. Large businesses routinely report millions of dollars in unclaimed property annually, with states then holding the property as custodians until owners come forward to claim in perpetuity.

For non-compliant businesses, unaddressed unclaimed property obligations can trigger state examinations, interest, and penalties, making proactive compliance well worth the effort.

Read more on the Barnes & Thornburg blog.