2019 Q1

- A codification of the existing report delivery requirement which mandates that businesses deliver reports via a “business portal established by the Administrator” and that the holder make payment through that portal of the total amount due. - Adds a new penalty for a holder who fails to make a payment via the on-line portal. The penalty is mandatory and is an amount equal to the greater of $50 or 2% of the amount of the payment. Oregon HB 2274 – Introduced 1/12/2019 – Changes to Reporting Requirements, Payroll If enacted, this bill will: - Define Wages: “wages” means wages, commissions, bonuses or reimbursements to which an employee is entitled, or other compensation for personal services, other than amounts held in a payroll card. - Reduce the dormancy period for “wages” and “unpresented payroll checks” from 3 years to 1 year. Businesses with past or current employees in Oregon may be impacted by the change in dormancy period if this legislation becomes law. Define Late Reporting: A Report will be deemed not timely received and filed under the Act if: (a) it is submitted after the required filing date; (b) payment is made after the required filing (c) it is incomplete or otherwise does not meet the requirements of the Act. - Pinpoint the factors the administrator may consider in triggering an audit, including, but not limited to whether : (a) A business fails to report types of unclaimed property typically reported by like businesses; (b) Amounts listed on a business’s unclaimed property report or amounts remitted by the businesses are not comparable to those received from similar Tennessee Administrative Code 1700-02-01 et. seq. – Rules Proposed 12/4/2018 – Changes to Reporting Requirements and Other Regulations If adopted these administrative rules will: -

businesses; (c) Governmental agencies or other reliable sources have provided information indicating that a business may be holding unclaimed property that has not been reported; (d) The unclaimed property division has received evidence or complaints of failure by the business to send any required notice to an apparent owner; and (e) An examination has been initiated by another state or more than one state. Authorize the use of estimation in examinations for periods where records were not maintained under T.C.A. § 66-29-126 and the records of the business available for the periods covered by the examination are insufficient to permit the preparation of the audit report. Conclusion: While keeping track of recently enacted and proposed legislative changes can be time-consuming, it is essential to maintaining unclaimed property compliance and avoiding the risk of non-compliance penalties and interest. As state legislatures shorten dormancy periods, implement new reporting requirements, and adopt expanded due diligence parameters, businesses that may have been compliant previously could be caught off guard if they suddenly become subject to penalties for non-compliance. KPMG LLP will continue to monitor unclaimed property legislative and regulatory changes and trends impacting the oil and gas industry. For questions or more information, please contact Quin Moore at 360-319-3624 or qmoore@ kpmg.com or Karen Anderson at 303-381-7020 or karenanderson@kpmg.com . The information contained herein is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser. This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG LLP. -

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