Abandoned and unclaimed property services

Risk assessments and process reviews

We will assess your records to evaluate compliance with state unclaimed property laws and identify any risks. We can then advise on process improvements to address gaps and reduce exposure.

Areas of review may include:

• Legal entity structure
• Mergers and acquisitions history
• Historical filings
• Audit and notice history
• Current procedures
• Accounting records

Exposure quantification and voluntary disclosure agreements

Many companies manage unclaimed property risks through voluntary compliance. Our team assesses your exposure by analyzing records and using data-driven methods, including sampling or extrapolation, while factoring in relevant exemptions and administrative policies to reduce liability.

With a comprehensive understanding of your unclaimed property risk and laws, we work with state administrators to secure favorable results such as waivers of interest and penalties.

Audit mitigation and controversy

RSM offers comprehensive support in developing robust audit strategies, managing data collection, controlling engagement scope, and facilitating reductions and settlement negotiations. Our state and local tax specialists maintain strong working relationships with both state unclaimed property administrators and third-party auditors, enabling us to help clients navigate audits efficiently and effectively.

Annual unclaimed property compliance

Unclaimed property compliance may divert attention from essential business operations. RSM provides customizable, cost-effective, turnkey solutions designed to strengthen your internal controls and allow you to allocate resources to more strategic initiatives. Our team of unclaimed property professionals will:

• Collect and analyze your unclaimed property data.
• Identify relevant statutory exemptions and opportunities for liability reduction
• Generate all required due diligence correspondence.
• Prepare annual unclaimed property reports.

Unclaimed property consulting

RSM’s unclaimed property team can help you map out your own solution or work with you on specific issues as they arise. In addition to providing the targeted solutions above, we can assist with policy and procedure development, employee training, state-specific research, etc.

What is the escheatment process and how does it affect property owners?

Escheatment is the legal process by which unclaimed property is transferred to a state after remaining dormant for a prescribed period. Although owners retain the right to recover their property through the state's claims process, businesses are responsible for identifying reportable property, conducting required due diligence outreach and complying with state reporting requirements. RSM helps organizations evaluate their unclaimed property obligations, assess potential exposure and strengthen compliance processes.

What are the key differences in unclaimed property laws across different states?

Dormancy periods, due diligence rules, reporting deadlines and exemptions vary by state, and a company's state of incorporation often plays a critical role under U.S. Supreme Court priority rules. RSM helps organizations evaluate multistate unclaimed property exposure, develop practical compliance strategies and navigate voluntary disclosure programs that can help resolve historical liabilities while securing available interest and penalty waivers.

What should I do if I receive a voluntary disclosure agreement (VDA) invitation from a state?

A VDA provides an opportunity to voluntarily resolve unclaimed property compliance issues before a state initiates an audit. Participating in a VDA can often result in the waiver of interest and penalties while providing a structured path to compliance. Organizations should not ignore VDA invitations, as nonresponse frequently leads to audit referrals and greater scrutiny from the state. RSM assists companies in evaluating potential exposure, responding to state notices, and managing the VDA process to achieve the most favorable outcome available under state law.

What happens if I don't file unclaimed property reports?

Businesses that fail to file required unclaimed property reports may face audits, estimated assessments, interest and penalties that can span many years of historical activity. States have become increasingly sophisticated in identifying noncompliant holders through data sharing, outreach programs and third-party audit firms. Proactively addressing unclaimed property obligations is often far less disruptive and costly than responding to an audit.