By Dakin Jill
Reporting of ‘unclaimed property’ must be submitted annually to the State of Michigan. A third party’s unclaimed property might be any kind of physical or monetary item that its rightful owner has not claimed within a given time frame. The Uniform Unclaimed Property Act, Public Act 29 of 1995, establishes fines and penalties for any holder who fails to file a report of unclaimed property. CPA in Troy, MI, can help you with any issues you might have.
Organizations and governments should search for potential unclaimed property.
All businesses and government agencies with unclaimed assets belonging to people whose last known address is in Michigan and all Michigan-based businesses with unclaimed assets for which the owner’s address is unknown are subject to the mandate. The required retention period for reports and their accompanying records is ten years.
Uncashed vendor or other business checks are a common byproduct of daily operations for most businesses. These have a one- to three-year abandonment period, after which they must be reported and paid. However, other forms of unclaimed or abandoned property must also be reported. Overpayments from customers, escrow funds, cashier’s checks, certificates of deposit, securities, pension and insurance checks, and the contents of safe deposit boxes are all good examples. Different types of properties have different dormancy periods and dates of abandonment.
The following categories of property do not need to be reported:
- Valued at $25 or less, excluding dividends and stock-related items.
- Compensation of $50 or less that has been due for more than a year but has not been claimed by the owner.
- Amounts owed by one or more enterprises to another, excluding amounts held by banks and all outstanding cheques, drafts, or similar instruments.
- Gift certificates, gift cards, and credit memos with no inactivity fees and a minimum expiration period of five years.
If you have 10 or more unclaimed accounts, you must submit them all at once through upload, CD-ROM, or USB flash drive. If there are fewer than 10 items to report, you can submit them electronically or on paper.
Owners must be given written notice.
Owners must be informed that the State of Michigan may seize their property. Reports must be filed with no less than 60 days’ notice and no more than 365 days’ notice if:
- It looks like the owner’s address is correct.
- At least $50 should be attributed to the asset.
- The owner’s claim will be heard regardless of the passage of time.
