Unclaimed Property Alert - May 2016
There has been an increase in the amount of audit notices and penalty and interest assessments related to unclaimed property for non-compliance in Nevada that may impact your company. Please see this sample notice
as an example of the notice that some companies have received. The penalty and interest can be substantial when compared to the amount of unclaimed property being reported to the State (in the sample notice the penalty and interest was 5X what was actually due to the State). However, there is an avenue to avoid interest and penalty all together (see Sample Letter #2
Who is Affected:
What’s the Risk?
- Entities incorporated in NV
- Entities that have significant income tax apportionment factors in NV (e.g., revenue, payroll, property)
- Entities with significant # of vendors, customers or employees located in NV
- Acquisitions of Entities in NV or incorporated in NV
- Upon audit being sanctioned and assigned to a third party audit firm, the audit firm will solicit other states to join the audit prior to execution of NDA.
- Once a company receives an audit notice, they can no longer participate in the amnesty or VDA programs and interest and penalties may be assessed as follows:
- Penalty: $5,000
- Interest: 18% per annum from the date the property should have been reported to the State
Please contact Joeseph Carr
or Ricardo Garcia
for a complimentary discussion on this matter to determine how this can impact your company.