Missouri Legislation Adds Unclaimed Property Business-to-Business Exclusions and Other Changes
DALLAS, July 14, 2014 /PRNewswire/ -- Missouri HB 1075 was approved by the Governor on July 9, 2014. The items of most interest to unclaimed property holders include a business-to-business deferral based on an ongoing business relationship allowing for the exclusion from reporting, which states: "any outstanding check, draft, credit balance, customer's overpayment, or unidentified remittance issued to a business entity or association as part of a commercial transaction in the ordinary course of a holder's business shall not be presumed abandoned." Furthermore, the legislation defines a business credit as "any credit offered by one business entity to another business entity to be applied in exchange for goods or services but does not have a redeemable cash value" and provides these are not subject to the unclaimed property law. The dormancy period for payroll checks will be reduced from five to three years.
Additionally, enforcement of the unclaimed property act will not occur beyond three years after a report is filed or beyond six years if a fraudulent report is filed whereas if no report has been filed, the state treasurer has the authority to take enforcement actions at any time.
In accordance with Missouri rules, the unclaimed property legislative items become effective 90 days after adjournment of the Legislature, on or about August 28, 2014. The payroll check dormancy period reduction to three years begins on January 1, 2015.
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the sixth largest corporate tax practice in the United States. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 1,800 professionals and associates serves over 9,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at www.ryan.com.
TECHNICAL INFORMATION CONTACTS:
Mark A. Paolillo
Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
ProfNet - https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=112034