unclaimed property: reporting and claims processes bryant clayton and verna bright unclaimed...

Unclaimed Property: Reporting and Claims Processes

Bryant Clayton and Verna Bright

Unclaimed Property Division

Texas Comptroller of Public Accounts (CPA)

Topics Discussed

• Unclaimed Property Reporting Unclaimed property – what it is and isn’t Dormancy Periods Relevant Statute Due Diligence Reportable Property Types How to Report Do’s and Don'ts of Reporting ClaimItTexas.org search engine Claim types Supporting documentation Holder refunds or reimbursements

What is Unclaimed Property?

Property Types in Quick Start Reporting Guideat http://www.window.state.tx.us/up/forms.html

Unclaimed Property - Overview

• Comptroller Susan Combs took office in 2007 $1.3 billion returned to rightful owners

• Unclaimed property is a major initiative • Primary goal to return lost assets to citizens and local

Texas economies• Goal achieved through greater owner outreach and

claims processing performance enhancements

Unclaimed Property - Overview

In fiscal 2014 Texas:

• Received more than $440 million in abandoned property

• Received 17,245 Holder reports

Governed by:

Chapters 71 – 76 Texas Property Code• Chapter 71 applies to true escheat

• Chapter 73 applies only to financial institutions

• Chapter 74 governs reporting and claims processes

Recently added fields required for property report

• Effective 9/1/2009

• If known by the holder, include: Owner driver’s license or state ID

number (Texas only) Owner e-mail address

Recent Updates:

Owner Notices• For property valued at more than $250;• Mail no later than May 1 for July report• Second notice not required if mail

returned by post office according to your records

• Not required if good address is not available

Due Diligence:

Postage deduction • Deduct from cash amount owed each

owner

• Postage deduction from report total not permitted

• Postage deduction from property amounts less than $250 not permitted

Due Diligence:

• General purpose due diligence letter online at– http://www.window.state.tx.us/up/reporting.html

Due Diligence:

• Payroll• Accounts Payable• Miscellaneous Checks• Royalty / production payments • Bank Accounts• Matured life insurance policies• Any other unclaimed credit

Reportable Property Types:

• Holder reports due to Comptroller July 1 - Cut-off date of March 1

• Ongoing production payments reported annually• Dormancy period three years for most property

types except wages and utility deposits, which are one year

• Electronic payment threshold $100,000

Reporting Basics:

Paper CDs Disks

Download Comptroller’s free software• Enter data or import from spreadsheet• Submit report on:

Secure file transfer (preferred) Online Express (25 or fewer records)

Reports not submitted correctly will be rejected

Reporting Basics:

Common problems• Paper/CD/Disk reports

• Incorrect property type codes

• Missing owner addresses, Social Security Numbers, or account numbers (owner numbers)

Reporting Basics:

Common problems• Ongoing production payments sent monthly

without report

• Holders fail to contact CPA after attempt to collect corrected report

• Incorrect name formatting / “messy” data

Reporting Basics:

Claims for Property

Verna Bright

Unclaimed Property Division

Texas Comptroller of Public Accounts

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Overview

• Options for property searches• Claim types• Required information for filing

claims

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www.ClaimItTexas.org

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Search Requests

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Claim Types

• Original Owner• General• Business• Holder Refund/Reimbursement

• Photo Identification• Social Security Number• Additional documentation to prove

ownership

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Original Owner & General Claims

• Proof of Ownership• Business Taxpayer Number• Authority to Act form signed

by officer of business• Photo Identification • Business In Good Standing

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Business Claims

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• If reported property name is different than business claiming

• Proof of ownership• Merger/Buy/Sell Agreement• Articles of Incorporation

Business Claims – cont.

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Business Claims – cont.

Multi Corporation Claims• Must be approved by Research &

Correspondence section• Parent companies claiming

numerous subsidiaries• Proof of ownership

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Holder Refund

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Holder Refund/Reimbursement

Holder Reimbursement Request Form (53-115)

Holder Refund Request Form (53-115)

If more than one request, use supplemental sheet (53-117)

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Contact Information

Verna Bright (512) 463-4948Supervisor, Claims Section

Claims Section (800) 321-2274up.claims@cpa.state.tx.us

• Bryant Clayton - (512)463-6059

• Holder Reporting Section(reporting or statutory questions)

• (800) 321-2274, Option 5• up.holder@cpa.state.tx.us

Contact Us:

Search our Web Site:

• Reporting information www.window.state.tx.us/up/reporting.html

• Forms and guides

www.window.state.tx.us/up/forms.html

• Refer owners to search for their property

www.window.state.tx.us/up

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Contact Us:

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Questions: