What are Unclaimed Funds?
Unclaimed funds represent financial assets for which no activity has been generated by the owner for an extended period of time. Examples include uncashed payroll checks, uncashed dividend checks, customer deposits and accounts receivable credit balances.  Dormancy periods differ by various fund types and by state. For instance, payroll related funds, such as uncashed pay checks or commission checks, become subject to Ohio unclaimed funds reporting after one year.  In contrast, Kentucky’s dormancy period on payroll funds is two years.

Unclaimed Funds Reporting
All states have unclaimed funds reporting requirements. Businesses must determine whether they are holding unclaimed funds and if so, must attempt to contact the owner. If the owner does not respond, the funds must be reported and turned over to the state.  Generally, funds should be reported to the state of the owner’s last known address. Most states have an annual unclaimed funds filing date of November 1st, but New York, Pennsylvania, and Florida, among others, have different due dates.  Extensions are available upon written request.

Negative Reporting
What if I don’t have anything to report?  Approximately half of the states, including Ohio, Pennsylvania, and Indiana, require the filing of a negative report if no reportable funds are held.  For states that do not require negative reporting, it is still a good idea to file a negative report if your business has no reportable property, but has business locations, a significant customer base, or has previously reported unclaimed funds in those states.  This triggers the taxpayer to review their records annually, and also maintains the running of the statute of limitations.