Unclaimed Property

<p>Preface xi</p>
<p>Chapter 1 Four Myths of Unclaimed Property 1</p>
<p>Myth 1: We Don t Have Unclaimed Property. 1</p>
<p>Myth 2: Unclaimed Property Compliance is Voluntary. 1</p>
<p>Myth 3: If I Don t Have Records, the Auditor Can t Determine Any Unclaimed Property Liability for My<br />Company. 2</p>
<p>Myth 4: I Am Only Liable for Reporting Unclaimed Property to States Where I Conduct Business<br />(i.e., Have Nexus). 3</p>
<p>Chapter 2 What Is Unclaimed Property? 5</p>
<p>Purpose of the Unclaimed Property Laws 7</p>
<p>Terminology 8</p>
<p>What Types of Property Can Become Abandoned Property? 9</p>
<p>When Does an Item Become Unclaimed Property? 10</p>
<p>States Responsibilities 12</p>
<p>Holder s Responsibilities 12</p>
<p>Notes 14</p>
<p>Chapter 3 Basics of Unclaimed Property Reporting 15</p>
<p>Why You Must Report Your Unclaimed Property 15</p>
<p>Determining Your Liability 16</p>
<p>Where You May Have a Reporting Obligation: Jurisdiction 18</p>
<p>Due Dates, Due Diligence, Aggregates, and Dormancy Periods 19</p>
<p>Preparing the Report 20</p>
<p>Note 22</p>
<p>Chapter 4 Calculating Unclaimed Property Liability 23</p>
<p>Gather Your Records 23</p>
<p>Identify Your Company s Unclaimed Property Types 24</p>
<p>Determining Your Liability 24</p>
<p>You Do Not Have All of the Records for the Audit Period: Determining the Best Estimation Technique for<br />Your Company 28</p>
<p>Do Your Due Diligence 34</p>
<p>Complete the Final Summary Report and Pay the Money! 34</p>
<p>Chapter 5 Preparing for and Managing an Unclaimed Property Audit 37</p>
<p>Audit Targets: Are You Next? 37</p>
<p>Offense Contact the States for a Voluntary Disclosure Agreement 38</p>
<p>Beware the Gift Horse 39</p>
<p>Where to Start 40</p>
<p>Defense Your Company Has Received Notification of an Audit: Do Not Ignore the Letter! 41</p>
<p>First Contact 43</p>
<p>Recruit Your Team 45</p>
<p>Know Your Enemy: Unclaimed Property Auditors 46</p>
<p>Audit Timeline 49</p>
<p>Records Requests 49</p>
<p>Opening Meeting 50</p>
<p>Site Visit and Records Analysis 51</p>
<p>Closing Meeting 52</p>
<p>Final Assessment 53</p>
<p>Appeal Process 54</p>
<p>Audit Best Practices 55</p>
<p>Post–Audit Cleanup 56</p>
<p>Notes 57</p>
<p>Chapter 6 Developing Unclaimed Property Policies and Procedures 59</p>
<p>Compliance Timelines: Due Diligence, Aggregates, and Dormancy Periods 64</p>
<p>Content of Due Diligence Letters 65</p>
<p>Timing of Due Diligence Mailings 66</p>
<p>Aggregates 67</p>
<p>Dormancy Periods 69</p>
<p>Record Retention Policies 70</p>
<p>Managing Your Exceptions and Exemptions 70</p>
<p>Internal Controls: Checks and Balances 71</p>
<p>Internal Audits 71</p>
<p>Handling a Desk Audit or Fishing Call from a State Auditor s Office 72</p>
<p>Note 72</p>
<p>Chapter 7 Exemptions and Exceptions to Unclaimed Property Reporting 73</p>
<p>Business–to–Business Exemptions 74</p>
<p>Current Business Relationship 78</p>
<p>Gift Certificates/Gift Cards 80</p>
<p>Gift Card Corporations 85</p>
<p>Dormancy Fees 86</p>
<p>Customer Credits/Credit Balances 89</p>
<p>Tangible Personal Property 89</p>
<p>Notes 91</p>
<p>Chapter 8 Special Industry Considerations 93</p>
<p>Insurance 93</p>
<p>Offers to Settle 94</p>
<p>Demutualization of Shares 96</p>
<p>Banking 97</p>
<p>When Is an Account Considered Dormant? 97</p>
<p>What Fees Can Be Imposed on Dormant Accounts? 98</p>
<p>Safe–Deposit Boxes 98</p>
<p>Money Orders and Traveler s Checks 99</p>
<p>Health Care 99</p>
<p>Not–for–Profit Medical Service Providers 103</p>
<p>Oil, Gas, Utilities, and Energy 103</p>
<p>Oil, Gas, Coal Mining, and Other Mineral Mining Industries 103</p>
<p>Utilities 105</p>
<p>Utility Co–ops 106</p>
<p>Retail 107</p>
<p>Customer Loyalty/Incentive Programs 107</p>
<p>Gift Certificates/Gift Cards 107</p>
<p>Notes 108</p>
<p>Chapter 9 Foreign Unclaimed Property Laws 111</p>
<p>U.S. Laws on Foreign Escheat 112</p>
<p>Indian Reservations 112</p>
<p>U.S. Territories 113</p>
<p>Other Nations Laws 115</p>
<p>Canada 115</p>
<p>United Kingdom 118</p>
<p>Australia 119</p>
<p>New Zealand 124</p>
<p>Hong Kong 127</p>
<p>Notes 128</p>
<p>Chapter 10 Selected Legal Issues in Unclaimed Property Audits 129</p>
<p>Lack of Nexus as an Audit Defense 129</p>
<p>Dormancy Fees and Service Charges 130</p>
<p>Expiration Dates and Other Contractual Limitation Periods 131</p>
<p>Unclaimed Employee Benefits 132</p>
<p>Unclaimed Property of Bankrupt Holders 133</p>
<p>Mergers and Acquisitions: Successor Liability 134</p>
<p>Asset Acquisitions 135</p>
<p>Notes 137</p>
<p>Chapter 11 How Not to Be a Victim of Unclaimed Property Fraud 139</p>
<p>Psychology of Fraud 140</p>
<p>Types of Fraudsters 141</p>
<p>Mitigating the Risk of Unclaimed Property Fraud 143</p>
<p>Note 146</p>
<p>Chapter 12 Trends in Unclaimed Property 147</p>
<p>Legislative Trends 147</p>
<p>Non–Legislative Trends 150</p>
<p>Conclusion 153</p>
<p>Appendix A XYZ Corporation: Unclaimed Property Holder Questionnaire 155</p>
<p>Appendix B Sample Policy and Procedure Manual 159</p>
<p>Appendix C Sample Due Diligence Letter 171</p>
<p>Appendix D State Unclaimed Property Offi ce Contacts 173</p>
<p>Appendix E Sample Audit Records Request 185</p>
<p>Appendix F Summary of Current Gift Certifi cate Law 187</p>
<p>Glossary 201</p>
<p>Index 203</p>