October 23, 2003
FOR IMMEDIATE RELEASE
New York Initiates Unclaimed Property Amnesty with Outreach Program.
The State of New York today began sending letters to non-compliant holders
of unclaimed property, offering them a unique opportunity to comply without
penalty. The New York Office of Unclaimed Funds recently researched the
New York Secretary of State business registry to match company names with
its holder compliance database. Any company it found that is licensed to
do business with the state, but is not in compliance with its unclaimed
property laws, will receive a letter as part of the Outreach Program. The
Program permits businesses and organizations with unclaimed property obligations
to voluntarily report past obligations without penalty or interest assessments
within 6 months of receiving this letter and to qualify for favorable treatment.
Businesses that do not respond in a timely fashion to this letter will be
referred to the state's audit program.
Background
Any type of organization or business (including not-for-profit) in any industry
has the potential to generate unclaimed property and be subject to these
state laws. Certain industries generate unique types of unclaimed property,
including retailers, health care, transportation, utilities, insurance,
and financial institutions. Types of unclaimed property typically include,
but are not limited to: uncashed payroll, accounts payable and benefit checks,
unclaimed deposits, unidentified payments, credit balances, and gift certificates.
In short, any amount that may be owed to another person or legal entity
and remains outstanding could be considered unclaimed property. Further,
amounts that have been written off the books, or if documentation is lacking
to substantiate the appropriate disposition of funds, the state has the
authority to develop an estimated liability for these items under audit.
Opportunity
Companies can take a proactive approach to unclaimed property compliance
with a voluntary review of compliance needs and objectives. By undergoing
a self-review, companies can resolve any unclaimed property exposure with
the identification, quantification, and negotiation of favorable voluntary
disclosure terms with New York, or any other jurisdiction where property
is found due.
Companies that may not be in compliance with New York's unclaimed property
laws and regulations can apply for amnesty, unless the state has contacted
you for audit. Amnesty will not be extended beyond the 6 month period if
your company has received an Outreach Program letter.
If you have any questions regarding the above information, please contact
Mr. G. Brint Ryan, Managing Principal of Ryan & Company, at
972.934.0022. Mr. Ryan can also
be reached via e-mail.
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