If your company has received a letter from a state requesting an unclaimed property report and has not previously filed one, now is a good time to assess all unclaimed property liabilities due to that state. Your company may also receive a notice from a state that requires a negative or zero report, particularly if it has a history of filing in that state.

The laws were put in place to prevent 'unjust enrichment' on the part of the holders and to protect the property rights of the true owners. In theory, and mostly in practice, the states serve as custodians for these funds until the rightful owner comes forward to claim them.

Although several attempts have been made to promote uniformity through the announcement of the Uniform Unclaimed Property Acts, the states are free to choose how to craft their respective statutes. Many states utilize one of the Uniform Acts as the basis for their own statutory framework, but exceptions remain.

Most state Administrators and staff are very helpful when it comes to assisting holders with their specific questions. However, if your issue is particularly sensitive, it may make more sense to vet possible solutions (or additional queries) with counsel or trusted advisors. Oftentimes, the benefit of experience and specific expertise can provide a perspective and potential benefits that weren't previously considered.

This decision will depend on in what state your company wishes to pursue a VDA, how old the property being reported is, and how much is being reported.

These aren't the only factors, but these are the most important ones. A VDA is a more formal voluntary process of filing unclaimed property to a state where there has been no prior reporting history. States offering these programs often require that your company is not currently under audit with that state. Not all states have VDA programs.

Those with programs provide benefits to holders, such as penalty and interest abatements or waivers and agreements with states not to audit for the period the property is being reported. Please discuss this process with a service professional before making a decision.