As a business owner, you may have come across the term “unclaimed property” and wondered what it means. Unclaimed property is any financial asset, such as money, stocks, or bonds, that has been abandoned by its owner and is held by the state or government until the rightful owner claims it.
If your business holds unclaimed property, it is your responsibility to report and return it to the appropriate state government. Failure to do so can result in penalties and legal action.
This is where the Unclaimed Property Voluntary Disclosure Agreement (UPVDA) comes in. It is a program offered by state governments that allows businesses to report and remit unclaimed property voluntarily, without being penalized for previous non-compliance.
Participating in the UPVDA can benefit your business in several ways. First, it can help you avoid costly penalties and legal action. Non-compliance with unclaimed property laws can result in fines, interest, and in some cases, criminal charges.
Second, voluntarily reporting unclaimed property can also help you build a positive relationship with the state government. It shows that your business is committed to compliance and responsible financial practices.
Finally, participating in the UPVDA can also help you identify and reconcile any unclaimed property your business may be holding. This can help you clean up your records and ensure that your financial statements are accurate.
To participate in the UPVDA, businesses must contact the appropriate state government and request to enter into the program. The state will then work with the business to identify any unclaimed property and develop a plan for reporting and remitting it.
In conclusion, if your business holds unclaimed property, it is important to take action and report it to the appropriate state government. Participating in the Unclaimed Property Voluntary Disclosure Agreement can help you avoid penalties, build a positive relationship with the state, and ensure that your financial records are accurate. Contact your state government to learn more about participating in the UPVDA.