Recent News in financE

While the vast majority of unclaimed property is due to be reported before November 1, many holders, especially insurance companies, will also need to file a report in the spring, before May 1. A handful of jurisdictions require all holders to file their unclaimed property reports in the spring, notably Vermont, Connecticut, Pennsylvania, and Florida.

2020 sure has been something, and the fun isn’t over yet: the big fall deadline for unclaimed property reports is fast approaching, but this year October 31 and November 1 fall on a Saturday and a Sunday respectively. Will this cause any changes to your unclaimed property reporting process?

We hope that everyone is staying safe and sane during this terrible pandemic. FSI acted quickly to ensure the safety of our team, and though we have been working from home since mid-March, our level of service remains undiminished.

Starting this year, the IRS requires holders to deduct the 10% federal tax from traditional IRAs prior to unclaimed property reporting. NAUPA recommends using the TW “Income Tax Withheld” standard deduction code in this case. The value of the property before the deduction should be put in the PROP-AMOUNT-REPORTED field, and the amount after the 10% deduction goes in PROP-AMOUNT-REMITTED.

Our neighbors to the north handle unclaimed property differently than we do here in the states, and the rule differences between provinces are stark. Understanding these differences is useful if you do business in Canada.

In the unclaimed property world we toss the word escheat around freely, to the befuddlement of the uninitiated. Further complicating matters, we often use it incorrectly!