Unclaimed property compliance
When a business holds money or property that belongs to someone else and cannot return it, the law may require the business to report it and hand it over to the state. This is often called unclaimed property or escheat.
Examples can include uncashed payroll checks, unused credits and old vendor refunds. A partner firm can review whether your business is meeting these duties.
Fairview Audit connects you with a partner firm. Fairview does not perform compliance work and does not give legal advice.
What an unclaimed property review looks at
The rules vary by state, by type of property and by how long it has gone unclaimed. States generally expect a good-faith effort to reach the owner before property is turned over. A review compares your records with those rules and shows where reports may be missing or late. [VERIFY: current dormancy periods and reporting deadlines for the states where you operate]
Typical areas include:
- Outstanding checks, such as payroll and vendor payments that were never cashed.
- Customer credits, deposits and overpayments held on your books.
- Vendor refunds and credits you have not claimed or applied.
- Gift cards and similar balances, where rules apply to them.
- Records of attempts to contact the owner before property is reported.
- Past reports, and whether they covered every state and property type.
- Your internal process for finding and handling this property.
If a review finds that reports were missed, some states run voluntary compliance programs for holders who come forward before an audit. The right choice depends on the facts and on advice from counsel.
What you provide
Your partner firm will confirm the list. Expect to gather:
- General ledger detail for liability accounts, such as customer credits and accrued items.
- Lists of outstanding checks and how old each one is.
- Past unclaimed property reports and any state correspondence.
- Records showing where you have employees, customers or operations.
- Details of your current process for contacting owners.
- Any notices from a state about an audit or inquiry.
- Contact details for the people in accounting and human resources.
Gather any state notice first. A notice usually has a deadline, and the partner firm will want to see it early.
What happens after you submit a request
- You choose a request path and submit the form.
- The request goes to a matched partner firm, or to Fairview for manual matching.
- A partner firm contacts you to discuss your situation and its terms.
- You share your records.
- The partner firm reports its findings.
- You decide how to proceed, with the firm and your own counsel where needed.
You stay involved. The engagement and any fees are between you and the partner firm. [CONFIRM: a partner firm supplies and approves which states and property types it covers]
Who this suits
This category suits a business that:
- Has never filed an unclaimed property report.
- Operates in more than one state.
- Holds old customer credits, uncashed checks or unapplied refunds.
- Has received a notice or audit letter from a state.
Related finance questions may sit in your payables records. See Accounts payable audit and Sales and use tax for other reviews that touch the same accounts.
The partner firm that fits may depend on your size.
How Fairview matches you
There are three request paths: larger business, smaller business, and not sure or another need. Each has a form: larger business, smaller business or other needs. Fairview sends the request to a matched partner firm, or matches it by hand on the other path. You then deal with the firm directly. See how it works.
An independent partner firm that specializes in unclaimed property compliance handles this work. Fairview Audit makes the match. We do not perform the review ourselves.Who does the work
Frequently asked questions
Does every business have to report?
Many do, but it depends on the type of property and the state. A partner firm can tell you what applies to you.
Is this the same as a tax audit?
No. It is a separate set of state duties.
Can I fix past gaps?
Often there are ways to do so. Ask the partner firm and your counsel what applies in your case.
Who sets the fee?
The partner firm sets it under its own terms. Fairview does not.
Related pages
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