As states gain access to a wealth of benchmarking data, they can now more accurately identify companies suspected of underreporting or not reporting unclaimed property. This has led to a significant increase in unclaimed property notices being sent out to companies of all sizes ranging from $5M to multiple billion dollars. The states have learned that they can initiate more audits while incurring fewer expenses by sending out self-audit notices. While these notices don’t seem intrusive at first glance, there are some key points that companies should be aware of:


Typically, companies have 30-90 days to respond to a self-audit notice. If a company does not respond or the review is deemed insufficient, the state can turn the company’s name over to its contracted third-party auditor for a full audit that could subject the company to late-filing penalties and interest.


The time to complete the self-audit is very short for the extensive review expected. Some states expect companies to complete the full review and due diligence process in as little as four months.

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