Reporting Unclaimed Property Attorney General Offers Amnesty Program
By Greg Zoeller
When I took office in January 2009, I realized (while finding rightful owners of unclaimed property) that some of our businesses didn’t understand or know about their legal obligation to report. That is why my office is offering a one-time only amnesty program to allow businesses that are holding unclaimed property to come into compliance with Indiana’s Unclaimed Property law (Indiana Code § 32-34), without being assessed interest and penalties.
Indiana’s Unclaimed Property law requires businesses to report and deliver assets they hold in which they have not been able to locate the owner. The time period of inactivity with a business, or “holder,” is defined by statute.
Examples of such holdings include:
Checking accounts
Utility deposits
Insurance payments
Security investments
Uncashed wages
The goal of our office continues to be to reunite as many Hoosiers as possible with the money that rightfully belongs to them. We have been successful in increasing citizens’ awareness of unclaimed property, but it is also important that businesses recognize their obligations to report (under law) and to the customers that they served at one time.
Auditing on the way
Our office is increasing and expanding audit procedures to enforce Indiana’s Unclaimed Property law. Under amnesty, businesses have an opportunity to comply before enhanced auditing begins.
Over the years, companies have always had the opportunity under voluntary compliance to report unclaimed property.This did help some businesses; however, many still hold unclaimed property that belongs to their customers. We are now putting the companies on notice that they have a one-year amnesty period before penalties and interest kick in.
The penalties for failing to file a report are $100 per day the report is late, up to $5,000. A holder who intentionally fails to pay or deliver property is subject to an additional civil penalty of 10% of the value of the property that must be paid or delivered. A holder that willfully refuses to pay after written notice commits a Class B misdemeanor.
Not all businesses have unclaimed property, but they still have an obligation to report – even if it’s a zero (no property) report. Businesses must recognize this annual obligation to report. Companies should welcome the desire to show transparency to their customers, ensuring those customers there are not accounts they may have forgotten about.
How it works
A holder is eligible for the amnesty program if:
they are not currently under examination by the Office of the Indiana Attorney General (OAG), or anyone acting on behalf of the office; or
they have not been notified by the OAG (or anyone acting on behalf of the office) of its intent to conduct an unclaimed property examination of the holders’ books and record.
Amnesty will expire on November 1, 2010. To be eligible for this one-time opportunity, a business must first complete and submit an amnesty agreement form and all relevant unclaimed property reports and remittances pursuant to the agreement by November 1, 2010.
Throughout the next several months, the Unclaimed Property Division will be conducting free educational workshops to increase awareness and understanding of an organization’s legal reporting obligations under state law. Dates of these workshops will be posted online as soon as they are available.
Any holder may request a FREE consultation from our education and compliance staff to help them identify property that must be reported.
This web site includes helpful information regarding reporting requirements, frequently asked questions and instructions on how to report unclaimed property. You may also call (317) 883-4520 or (800) 447-5598.
Author: Greg Zoeller was sworn info office as Indiana’s 42nd attorney general on January 12, 2009. He has extensive state and federal government, as well as private sector, experience. Learn more at www.in.gov/attorneygeneral
