Why is abandoned property a problem?
In search of new revenue sources, states are enforcing laws requiring companies to remit unclaimed assets more rigorously. Since the responsibility to report abandoned property rests on the holder, your company may be at risk for an audit. You may be contacted for an audit by a state, or by an outside contract auditor hired by a state or group of states. A state audit could entail a review of the last twenty-five years of your company’s financial records, or the state could project the liability when records no longer exist. State audits often result in findings of millions of dollars in unclaimed assets, interest and penalties, which could profoundly affect your company’s bottom line.