Because of the political hurdles typically constraining states from raising taxes, many have turned to raising revenues via laws already on the books. While audit fears generally cause companies to comply with other tax laws, many are unaware of their business’s obligations regarding unclaimed property, also referred to as “abandoned property”.
Many states in the past selectively enforced such laws, concentrating on financial institutions where abandoned accounts, safety deposit boxes, and uncashed dividend checks produced significant bangs for their audit bucks. Increasingly; however, states have turned to other sources, such as hospitals, and have increased enforcement against companies with large or transient payrolls that may fail to report uncashed payroll checks.
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