Why Timely Unclaimed Property Reporting Matters: A Crucial Reminder as State Deadlines Loom

At a glance

• The main takeaway: Businesses required to complete unclaimed property reporting should begin planning for upcoming state compliance deadlines.
• Impact on your business: Failure to comply can result in significant penalties, interest, and even audits, in addition to reputational harm.
• Next steps: Take steps to establish best practices for unclaimed property compliance. Software solutions and skilled advisors can streamline the process.

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The full story

As fall approaches, so does a critical compliance milestone for businesses across the United States: unclaimed property reporting. With filing and remittance deadlines for more than 40 states landing on October 31 or November 1, companies should be thinking now about compliance and ensuring that these obligations are met to avoid costly consequences.

What is unclaimed property?

Unclaimed property refers to financial assets that have been abandoned or forgotten by their rightful owners. These can include uncashed payroll checks, customer refunds, dormant bank accounts, and more. When these assets remain untouched for a statutory period—typically one to five years—holders are required to report and remit them to the appropriate state authority.

The scale of unclaimed property in the U.S. is staggering. According to the National Association of Unclaimed Property Administrators (NAUPA), states collectively hold over $70 billion in unclaimed assets, and the states returned approximately $4 billion to rightful owners in 2024 alone.

Why does this matter for businesses?

Failure to comply can result in significant penalties, interest, and even audits. States have become increasingly vigilant, using sophisticated data-matching tools to identify non-compliant businesses. Beyond the financial risk, non-compliance can damage a company’s reputation and erode trust with customers and stakeholders.

The fall reporting season is particularly intense. Over 40 states have annual deadlines in October and November, making this a high-pressure time for compliance teams. Preparing for these deadlines requires more than just filling out forms—it involves gathering and validating data, conducting due diligence to locate owners, and navigating a myriad of state-specific requirements.

How can businesses stay ahead on compliance?

Companies should adopt best practices such as maintaining accurate records, conducting regular reviews of dormant accounts, and establishing internal controls around identifying liabilities and reporting. Leveraging technology can also streamline the process and reduce the risk of errors.

For businesses managing this process in-house, Simple Escheat software offers a powerful solution. It simplifies the complexities of multi-state reporting, automates key compliance tasks (e.g., due diligence mailing), and helps ensure compliance with ever-evolving regulations. For companies seeking a more hands-off approach, Aprio’s Unclaimed Property and Escheatment Services (UPES) group provides complete outsourcing support—from due diligence to filing—allowing businesses to focus on their core operations while staying compliant.

Did your company receive a VDA invitation letter from Delaware?

Earlier this year, Delaware began issuing Voluntary Disclosure Agreement (VDA) notices to businesses requesting participation in the state’s VDA program. The Aprio UPES team has vast experience dealing with these notices and guiding clients through the Delaware VDA process. We’ve successfully supported numerous organizations in evaluating their exposure, responding to the state, and navigating the compliance requirements to minimize risk and avoid interest or penalties. If you’ve received a letter and are unsure of how to proceed, we’re here to help you assess your options and take the next steps with confidence.

The bottom line

With deadlines fast approaching, now is the time to act. Whether you choose to manage reporting internally or partner with experts, timely and accurate unclaimed property compliance is not just a legal requirement—it’s a smart business move.

Schedule a consultation with Aprio’s unclaimed property and escheatment services team to learn more about how we can streamline your compliance needs.