The increasing need for compliance.
Many companies may not fully understand – or even be aware of – unclaimed property regulations. Unclaimed property consists of tangible and intangible items that a business owes to its employees, customers, vendors, creditors, or shareholders. Examples include un-cashed checks, unused gift certificates, credits, deposits, refunds, and rebates.
States have recently been enforcing unclaimed property laws more strictly. Audits have expanded to even $100M companies, and can go back 20 years or more. Most of these audits are multi-state in nature, and are conducted by third party, contingency-based firms (fees up to 12% of escheat assessment value imposed on the audit). More than ever, companies must comply with the wide range of complicated state laws and local reporting requirements, and meet the related deadlines.
BDO has extensive experience and the comprehensive technical and information technology resources required to mitigate unclaimed property exposure, including:
- Voluntary Disclosure Agreements
- Audit Defense
- Policy Procedure
- Feasibility Study
- Due Diligence