Unclaimed Property: Reporting and Claims Processes Bryant Clayton and Verna Bright Unclaimed Property Division Texas Comptroller of Public Accounts (CPA)

Topics Discussed Unclaimed Property Reporting Unclaimed property – what it is and isn’t Dormancy Periods Relevant Statute Due Diligence Reportable Property Types How to Report Do’s and Don'ts of Reporting ClaimItTexas.org search engine Claim types Supporting documentation Holder refunds or reimbursements

What is Unclaimed Property? Property Types in Quick Start Reporting Guide at http://www.window.state.tx.us/up/forms.html

Unclaimed Property - Overview Comptroller Susan Combs took office in 2007 $1.3 billion returned to rightful owners Unclaimed property is a major initiative Primary goal to return lost assets to citizens and local Texas economies Goal achieved through greater owner outreach and claims processing performance enhancements

Unclaimed Property - Overview In fiscal 2014 Texas: Received more than $440 million in abandoned property Received 17,245 Holder reports

Governed by: Chapters 71 – 76 Texas Property Code Chapter 71 applies to true escheat Chapter 73 applies only to financial institutions Chapter 74 governs reporting and claims processes

Recent Updates: Recently added fields required for property report Effective 9/1/2009 If known by the holder, include: Owner driver’s license or state ID number (Texas only) Owner e-mail address

Due Diligence: Owner Notices For property valued at more than $250; Mail no later than May 1 for July report Second notice not required if mail returned by post office according to your records Not required if good address is not available

Due Diligence: Postage deduction Deduct from cash amount owed each owner Postage deduction from report total not permitted Postage deduction from property amounts less than $250 not permitted Q: What if the second owner on a record has a different address? Do we mail letters to both? A: Yes, if they are joint owners and are both entitled to claim the property at the time of your mailing. There are exceptions. For example, if the 2nd name on an account is only a Payable On Death (POD) designation and the owner is still alive, do not mail a letter to the 2nd address.

Due Diligence: General purpose due diligence letter online at http://www.window.state.tx.us/up/reporting.html

Reportable Property Types: Payroll Accounts Payable Miscellaneous Checks Royalty / production payments Bank Accounts Matured life insurance policies Any other unclaimed credit

Reporting Basics: Holder reports due to Comptroller July 1 - Cut-off date of March 1 Ongoing production payments reported annually Dormancy period three years for most property types except wages and utility deposits, which are one year Electronic payment threshold $100,000

Reporting Basics: Download Comptroller’s free software Paper CDs Disks Enter data or import from spreadsheet Submit report on: Secure file transfer (preferred) Online Express (25 or fewer records) Reports not submitted correctly will be rejected

Reporting Basics: Common problems Paper/CD/Disk reports Incorrect property type codes Missing owner addresses, Social Security Numbers, or account numbers (owner numbers)

Reporting Basics: Common problems Ongoing production payments sent monthly without report Holders fail to contact CPA after attempt to collect corrected report Incorrect name formatting / “messy” data

Claims for Property Verna Bright Unclaimed Property Division Texas Comptroller of Public Accounts

Overview Options for property searches Claim types Required information for filing claims

www.ClaimItTexas.org

Search Requests

Original Owner General Business Holder Refund/Reimbursement Claim Types Original Owner General Business Holder Refund/Reimbursement

Original Owner & General Claims Photo Identification Social Security Number Additional documentation to prove ownership

Business Claims Proof of Ownership Business Taxpayer Number Authority to Act form signed by officer of business Photo Identification Business In Good Standing https://mycpa.cpa.state.tx.us/coa/Index.html

Business Claims – cont. If reported property name is different than business claiming Proof of ownership Merger/Buy/Sell Agreement Articles of Incorporation

Business Claims – cont. Multi Corporation Claims Must be approved by Research & Correspondence section Parent companies claiming numerous subsidiaries Proof of ownership

Holder Refund If funds are to be mailed to an address different than the address on the Holder Report submitted to Comptroller, it will require an Authority to Act from an officer of the corporation.

Holder Refund/Reimbursement Holder Reimbursement Request Form (53-115) Holder Refund Request Form (53-115) Report Year – year reported to Comptroller Report Amount – Total dollar amount of report to Comptroller Property Type – property type for individual/business Aggregate – was it reported as an Aggregate (less than $50) Property Amount – amount reported for individual Claim Amount – amount requested back If more than one request, use supplemental sheet (53-117)

Contact Information Verna Bright (512) 463-4948 Supervisor, Claims Section Claims Section (800) 321-2274 up.claims@cpa.state.tx.us

Contact Us: Bryant Clayton - (512)463-6059 Holder Reporting Section (reporting or statutory questions) (800) 321-2274, Option 5 up.holder@cpa.state.tx.us

Contact Us: Search our Web Site: Reporting information www.window.state.tx.us/up/reporting.html Forms and guides www.window.state.tx.us/up/forms.html Refer owners to search for their property www.window.state.tx.us/up

Questions: