Unclaimed Property: Overlooking This Reporting Requirement Can Cost You Thousands and May Include Jail Time!
Did you know that Arizona has Unclaimed Property laws? Failure to comply with the reporting requirements can result in steep penalties of 100% of the amount of assets held and additional penalties up to $5,000. In addition, if the state deems that you knowingly withheld the reports, it can prosecute for a fine of $1,000 plus one year in jail.
Arizona defines Unclaimed Property as a financial asset owed to an individual or business. While this can include many types of assets the most common item for small businesses is uncashed vendor, customer and payroll checks.
Here are 5 key things you need to know:
- With the most common types of funds, property holders are required to turn the funds over to the state after a 3-year period of no contact with the property’s owner.
- No amount is too small! The state does not provide a threshold for material amounts. All held property is required to be reported and turned over to the Arizona Unclaimed Property Unit.
- You have until July 1st to send written notice to the last known address of the property owners for whom you are holding at least $50 in assets.
- Reports are due to the state on October 31st for the general business owner.
- If you find you are holding property older than the 3-year period you may qualify for the Voluntary Compliance Program to avoid penalties and interest.
Need help? Reach out today! More information can also be found on the state’s website at https://azdor.gov/unclaimed-property/holders-report-property.
