Frequently Asked Questions
Why do I have to turn this seemingly unwanted money over to the states?
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 it.
Why isn’t there more uniformity across the various states with respect to the laws?
Although several attempts have been made to promote uniformity through the promulgation 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.
How or why did I get selected for audit?
There could be many reasons for this. Some states consistently compare their Secretary of State licensing rolls with an unclaimed property compliance database; appearing on the former and not the latter may present an ideal audit candidate. Third party audit firms are fiscally motivated to generate and complete audits for their contract audit states, and will generally select the most attractive audit candidates to maximize their return on investment. We could go on – but the more important issue is to determine how to handle the audit once your company has been notified.
Should I just start filing unclaimed property reports if my company has never done so?
Likely not – your company’s decision to comply should not be taken lightly, as questions could arise from those jurisdictions in which filings are made for the first time. These questions should be anticipated (or preempted entirely) and responses planned in advance. More importantly, the company may be missing out on important benefits (including the waiver of interest and penalties) on the first filing pursuant to the negotiation of a voluntary compliance agreement – an opportunity which is forfeited if reports are simply sent in without forethought.
How can I claim my company’s cash?
This industry is crowded with scam artists and small operations that claim to help you find your company’s money for a fee. With the proper devotion of time and resources, you can find most of this money on your own. Starting at the NAUPA website (www.unclaimed.org) will link you to each individual state website to begin searching. Of course the question is how much time and energy do you have to perform comprehensive and detailed searches? And, once the search is done what do you do from there?
I have what I believe is a novel issue related to our operations – should I call the state?
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.
What are the benefits of hiring a “boutique” firm for unclaimed property help?
JMS Advisory Group offers practical, cost-effective solutions. Our expertise has been formulated in the trenches with our clients, and with the strong foundation of international accounting firm experience. Perhaps more importantly, unclaimed property is all we do. We don’t dabble, nor will we ask a junior staffer to research the law so we can sound like we know what we’re talking about – we get to the point with the expertise you need, and we are prepared to help you. Call us – you’ll soon experience another of our other many benefits – accessibility.
