Unclaimed Property Compliance - Learn How to Manage the Risk

NEW YORK, June 4 /PRNewswire-USNewswire/ -- Learn what it takes to create and manage a successful unclaimed property compliance program. The Unclaimed Property Professionals Organization (UPPO) invites you to its popular one-day seminar on Tuesday, July 20, 2010 at the Hyatt Regency in downtown Minneapolis. This unique event features UPPO's highly successful "Unclaimed Property 101" approach – a basic learning track covering the fundamentals of unclaimed property. New this year is an intermediate track for professionals who need more indepth knowledge, tools and insight.

For details or to register, go to www.uppo.org

2010 UPPO Regional Seminar

8:00 a.m.–5:30 p.m.

Tuesday, July 20, 2010

Hyatt Minneapolis

If your company does business anywhere in the U.S. (and certain Canadian provinces), you're required to report unclaimed property to at least one state, and probably to several. However, many companies remain unaware of these requirements or mistakenly assume they pertain to real estate. As a result, they are at risk for state compliance audits that can cost literally millions of dollars.

In fact, unclaimed property compliance deals with everyday intangible property common to almost any company – uncashed payroll checks, refund or vendor checks, credit balances, and, in many states, gift certificates, gift cards, and rebates. The cost of non-compliance continues to rise, as many states have stepped up enforcement to help balance budgets without raising taxes.

About the Unclaimed Property Professionals Organization www.uppo.org

UPPO is the premier resource for professional unclaimed property education, information, networking and advocacy. A trade association that began in 1992, UPPO is recognized as the voice for holders of unclaimed property. UPPO member companies represent a wide spectrum of industries that deal with unclaimed property, including manufacturing, healthcare, retail, insurance and financial services. Collectively, unclaimed property professionals make decisions and manage portfolios worth billions of dollars for their employers.

About unclaimed property – why it's an important story

CBS News reported May 13 that state treasuries and other agencies currently have about $33 billion worth of unclaimed property – not real estate, but uncashed intangible property such as payroll checks, refund or vendor checks, credit balances, and, in many states, gift certificates, gift cards, and rebates. 

Companies holding unclaimed property are required to report it to the states, which act as custodians until the property can be returned to the rightful owners (or their heirs). Minnesota alone has more than $400 million, with more than $45 million received since July 1, 2009. Other states report similar trends. For example, Kansas returned a record amount of unclaimed property last year, and Wisconsin just kicked off a campaign to return millions of dollars in unclaimed property.

As custodians, the states cannot claim the property as their own … but they can earn interest on the value of the property. As a result, to help balance tight budgets, many states have stepped up enforcement of their unclaimed property laws. For example, Pennsylvania just announced a program to improve compliance that will generate an estimated $50-$80 million per year in additional revenues.

While unclaimed property laws are similar from state to state, there are enough differences to make reporting complicated and expensive. However, failure to report can be even costlier. As states ramp up their enforcement efforts, companies that choose not to report are being assessed hefty fines for non-compliance – penalties up to $25,000, plus 25% of the value of the property, plus interest until the penalties are paid.

Most companies are understandably reluctant to reveal they've been the target of an audit. However, earlier this month, a major IT company stated in its quarterly earnings report it had made "… cash outlays of $11.8 million during the three months ended March 31, 2010 to settle trade credit liabilities as part of our previously announced program of compliance with state unclaimed property laws."

SOURCE Unclaimed Property Professionals Organization