JMS Advisory Group, LLC
Escheat & Unclaimed Property
Discussion
Douglas M. Halka
Director
James O. Santivañez
Director
www.jmsadvisors.com
Who We Are
• Attorneys, CPAs and Former State Agency Officials
Experienced in Unclaimed Property Matters
• Specialists in Complex Company Reviews & Designing
Internal Compliance Systems For Clients
• Client Advocates/No Conflicts of Interest
• Serving Primarily the Fortune and S&P 500
• Unclaimed Property & Escheat Consulting Is All We Do
What We Do
Voluntary Disclosure
– Quantification & Analysis Of
Exposure
– Negotiation on Clients’ Behalf
Asset Recovery
– Asset Identification
– Claims Preparation
General Consulting
Audit Defense
– Defense Strategy
– Documentation Preparation
– Negotiation
Annual Reporting & Compliance
– Outsourcing/Co-sourcing
– Report Review
– Policy & Procedure
Development
– Litigation Support
– Planning
– Gift Certificates/Cards
What is Unclaimed Property?
• Seems like a tax, but unclaimed property that must be turned
over to a state is not a tax in any sense
• More of an “obligation” as opposed to a tax on income,
property, or transactions
• However, states are clearly utilizing unclaimed property laws
to generate revenue
• Terminology: Unclaimed/Abandoned Property; Escheat
Current Environment
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States Are Looking For Revenue
Audit & Legislative Activity Is Picking Up
States Are Using Third Party Audit Firms
Administrative Burden Shifting To Holders
Uniformity Doesn’t Exist
Little Guidance In The Area
Industry Specific Issues
• Car Dealerships
• Payroll , Vendor Payments, Workers’ Comp
• Customer Deposits
• “We owe” obligations
• Use of Agents
• Insurance
• P&C Insurance
• Life Insurance
• Workers Comp
Industry Specific Issues
• Law Firms
• Trust & Escrow Funds
• Settlement Checks
• Construction
• Payroll
• Bond Postings/Deposits
• Manufacturing
• Payroll, Payables, Receivables, Inventory Management
Scenarios & What to Do Next
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Self-review: Controlled Liability/Exposure Analysis
Receive Reporting Package From State
Receive Compliance Letter From State
Receive Audit Notice From State
• Proactive vs. Reactive Approach