January 24, 2003
FOR IMMEDIATE RELEASE
Tennessee Unclaimed Property Amnesty Program.
The state of Tennessee is currently offering amnesty for holders of unclaimed
property. The program allows businesses and organizations with unclaimed
property obligations to voluntarily report past obligations without penalty
or interest assessments. The program also limits the state's look-back period
to ten (10) years. On audit, the look-back period for non-compliance can
go as far back as the date in which operations commenced in the state.
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 Tennessee, or any other jurisdiction where property
is found due.
Companies that may not be in compliance with Tennessee's unclaimed property
laws and regulations can apply for amnesty, unless the state has contacted
you for audit. Amnesty will not be extended beyond May 1, 2003.
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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