Compliance
Unclaimed property
Money owed to someone who cannot be located, such as an uncashed deposit refund, that must eventually be reported to the state.
Uncashed refund checks, credit balances and owner distributions that go unclaimed for a set dormancy period, often three to five years, must generally be reported and turned over to the state. This process is called escheatment.
States require due-diligence letters to the owner of the funds before reporting, and they audit for compliance. Tracking outstanding checks from the start makes annual reporting manageable. Check each state's rules and deadlines.
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