ALERT: Indiana Unclaimed Property – New Enforcement Efforts
Earlier this month, Indiana sent formal letter notices indicating that fines could apply under Indiana law for failure to timely report and remit unclaimed property. Some of the letters suggested that monetary penalties were being assessed, and attached invoices. The letters indicated that holders had 60 days from the date of the letter to either pay the penalties or convince the Indiana authorities that nothing is owed. Most importantly, the letters indicate that failure to comply would likely subject a company to an audit.
ONESOURCE Unclaimed Property professionals at Thomson Reuters recommend either:
- Send a letter confirming compliance. Understand that confirming compliance means that you are confident that you have actually complied. Further, you must be prepared to have either an officer of your company or your outside CPA, accountant or law firm execute an affirmation of compliance.
- Negotiate modifications. Before contacting Indiana’s Division of Unclaimed Property to negotiate modifications, conduct an internal review of books and records, and have procedures in place to identify, track, report and remit unclaimed property. If you use a third party to manage your compliance, you’ll want to conduct an internal audit of their processes, as well.