and industry type. Most of the states require filing for most industries (including O&G) in the fall. A handful of states have spring reporting deadlines across all industries, which are scattered from March to July. Reporting property too early or too late, with an incorrect report cycle or due date, or failure to comply with other state requirements can result in audits, voluntary disclosure agreement invitations, compliance reviews, and/or fines, penalties and/or interest assessments. • Understand negative report requirements for each state. Negative unclaimed property reports are reports that indicate the holder has no property to report to that particular jurisdiction for the given report year. Many states encourage the practice of submitting negative reports but do not officially require that they be submitted. Some states require negative reports to be filed if a holder has previously reported unclaimed property to that state. Other states require that if a holder is incorporated in that state or physically located in that state, the holder must file a negative report even if the holder has no property to report. • Identify the current to pay states and include all property required. The current to pay rule specifies that the first time you report a missing owner, you remit the total net amount you are holding for that owner, as of the date of your remittance, even
the owner’s last known address, as determined by the holder’s books and records. Second Priority Rule: The property is paid to the state of corporate domicile if the owner’s address is incomplete or unknown, or if the owner’s last known address is in a state that does not provide for escheat of the property owed. • Use the correct property type, property code and dormancy period. Properties are identified/communicated by property type codes. Each state has specific dormancy periods for each corresponding property type. All properties included in the annual report must be assigned the correct property type codes, and holders must select the property type code that best describes the original property of the owner. Please be aware that House Bill 4511 was recently enacted by the West Virginia Legislature. The bill made various changes to the unclaimed property act which will become effective on June 12, 2022. Among other changes the bill reduced the dormancy period for certain property types (i.e. mineral proceeds and mineral interests properties changed from 5 years to 3 years). • File the annual report and submit property to the state(s) by the deadlines . Unclaimed property due dates are spread across the calendar year and differ by state
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G rowth T hrough E ducat i on - A pr i l / M ay / J une 2022
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