Unclaimed and Reverse Unclaimed Property: Why Every Business Should Know Who They Owe and Who Owes Them

Unclaimed Property

Unclaimed Property (also known as abandoned or escheat property) is exactly that – money or tangible assets that belong to an individual or business but are viewed as “abandoned” because there’s been no activity or contact by the holder for one year or more. There are many types of unclaimed property, but the most common for individuals are uncashed payroll checks, forgotten bank accounts, and unrefunded utility security deposits. For businesses, uncollected vendor payments and tax refunds top the list. 

If you or your company owe money to others, you are considered a “holder.” The first step is identifying which of those obligations qualify as escheatable property, as this depends on the item type, its age, and the applicable jurisdiction. For example, payroll checks are typically reportable after one year, while vendor checks may be subject to holding periods of three, five, or even seven years. In some states, early remittance may be permitted. Before remitting any funds, you are legally required to attempt to contact the payee. If those outreach efforts are unsuccessful or go unanswered, the funds must then be reported and remitted to the appropriate state.

If you have never reported before and are already beyond the required filing period, consider proactively entering into a Voluntary Disclosure Agreement (VDA), if the state offers one. Many states take a more lenient approach when businesses come forward voluntarily. While an audit may still be possible, VDAs often eliminate penalties and interest and can significantly reduce the state’s lookback period.

Remitting funds is generally a straightforward process. While due dates vary by state, most fall on October 31 or November 1 each year. You’ll first need to register with the appropriate states through their application process. Once registered, you can file your report and remit the funds—often through convenient online filing and payment systems. Keep in mind, this is not a one-time task. Ongoing review and regular reporting are essential to maintaining compliance across jurisdictions.

Businesses should take note: unclaimed property has become an increasingly significant source of revenue for states. As a result, audit activity in this area continues to intensify. Items such as unreconciled bank accounts and credit balances in accounts receivable are common targets during examinations. States also have the authority to shorten holding periods, meaning items you may have planned to address later can quickly become reportable. With varying rules, timelines, and jurisdictions, unclaimed property compliance can be complex and difficult to manage without dedicated time and resources.

Reverse Unclaimed Property

On the flip side, Reverse Unclaimed Property is the process of identifying whether any holders may owe you or your business money or tangible assets.

Unclaimed property programs are active across every U.S. state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, several Canadian provinces, and even some foreign countries. In the U.S. alone, an estimated $50 billion remains unclaimed, making it well worth the effort to search.

Tips for the Taxpayer

Businesses need to have a solid process in place to determine whether they have funds that need to be escheated. Stay current on state unclaimed property reporting requirements.  Look for planning opportunities and VDA’s that might be applicable to your company. On the reverse side, businesses should conduct annual reviews to uncover funds owed to them.  If your company doesn’t have the time or expertise available to dedicate to unclaimed property reporting and review, seek a consultant with experience.

How Can We Help?

Allyn’s tax team is comprised of seasoned professionals with extensive experience in multi-state and local tax compliance and consulting for both U.S. and global corporations. We support businesses across the U.S. and Canada with ongoing unclaimed property reviews and compliance, backed by a strong understanding of technical regulations, procedures, and best practices.

Key Services:

• Comprehensive review of unclaimed property obligations
• Development of efficient, sustainable compliance processes
• Routine unclaimed property reporting and compliance support
• Identification of overreported or escheated funds owed back to your business
• Strategic guidance to ensure compliance while minimizing liability

We make the process easy to navigate. Engagement requires minimal data to get started, and our team manages the details while keeping you informed every step of the way. Our goal is to reduce the time and internal resources you need to dedicate to unclaimed property matters.

Our dedication to customer service is rated 350% higher than industry averages. Contact us for a customized solution: tax@allynintl.com.

For More Information

If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under Insights at www.allynintl.com.

Contributor: Megan Bryarly & Phil Staskowski

Updated: May 2026

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About Allyn International

Allyn International provides high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.