unclaimed property: reporting and claims processes bryant clayton and verna bright unclaimed...
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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) [email protected]
• Bryant Clayton - (512)463-6059
• Holder Reporting Section(reporting or statutory questions)
• (800) 321-2274, Option 5• [email protected]
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: