States can claim big dollars from unclaimed property

Billions of dollars lie unused on the books of U.S. businesses in the form of unredeemed gift certificates and gift cards, uncashed payroll checks, abandoned bank accounts, and in the contents of long-forgotten safe-deposit boxes. Across the nation, states are stepping up efforts to get this money—ostensibly to put it in the hands of the rightful owners. But much of this money will remain unclaimed and it can revert to the states, which are facing tight financial times. Some states are even turning to third-party auditors to ferret out the billions of dollars of unclaimed property. Many businesses don’t even know they have a problem in this area, which has typically been the realm of banks and financial institutions. A simple oversight or a misclassification on your general ledger could build up to a massive assessment by the state when compounded over the years.

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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products.

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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