New York Significantly Steps up Audit Enforcement while Increasing Incentives for Voluntary Compliance

DALLAS, April 27, 2017 /PRNewswire/ -- In early 2017, the State of New York's Comptroller's Office made a number of changes to the enforcement of its unclaimed property program. These changes will most likely have two main effects on companies operating in New York: significantly increasing the liability risk for non-compliant companies while at the same time providing an opportunity for substantial savings under its Voluntary Compliance Agreement (VCA) program.

Increased audit enforcement by using private, for-profit auditor firms

The state of New York has recently hired several private auditor firms to conduct unclaimed property audits on its behalf, which likely signals an inclination to enforce its audit program in a more robust and assertive manner.

Ryan's experience is that New York is currently targeting a number of industries for audit, such as healthcare, financial services, music and entertainment, and publishing and digital rights management.

Additionally, companies that are incorporated in New York or have a significant presence in that state are likely to face higher liabilities if audited. Unclaimed property audits administered by private auditor firms are typically difficult for companies to navigate; they can last for several years and often result in six- or seven-figure liability assessments.

More attractive voluntary compliance program

However, on January 20, 2017, New York announced the details of its new voluntary compliance program, which cuts the look-back period in half and eliminates penalties and interest. As a result, the new program presents a significant opportunity for companies that are not in compliance with New York unclaimed property laws as well as for companies in industries that are currently being targeted for audit.

The chart below illustrates the significant benefits of the new VCA compared to a situation in which a company is selected for audit:

To take advantage of New York's new and more business-friendly VCA and to reduce your company's audit risk, please reach out to one of Ryan's unclaimed property professionals.

About Ryan
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters 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 five-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 2,100 professionals and associates serves over 12,000 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 ryan.com.

TECHNICAL INFORMATION CONTACTS:

Mark A. Paolillo
Principal and Practice Leader
Ryan
857.288.1976
[email protected]

Jacob Oennerfors
Manager
Ryan
212.847.0126
[email protected]

SOURCE Ryan

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