Legal Matters

Belated (But Safe) Disclosure
If your company’s not in compliance with escheat laws, most states have voluntary disclosure programs allowing merchants that haven’t made abandoned property reports to fully disclose amounts owed with a waiver of interest and penalties. These can be very substantial.

Voluntary disclosure agreements, however, are only available to companies that haven’t been audited or received a notice of audit. So if your business has unreported abandoned property, you’re at risk of being targeted for a state unclaimed property audit. You should get advice from a professional who can help quantify the risk. If the situation warrants action, that professional can help you negotiate voluntary disclosure agreements before states start sending you audit notices. «