Unclaimed Property Reciprocity, Why or Why Not?

One of the options in filing your state reports is to use reciprocal reporting.

What is reciprocal filing?

This is when you have records for multiple states but report them all through one state. This is sometimes referred to as exchange reporting as well.

It’s very tempting to file one report and be done, right? Why wouldn’t you want to file to just one state and be done with it?

Here are the factors to consider. Reciprocity, when accepted, is usually limited to 10 out-of-state records that equal $,1000 or less. Some states just won’t accept it. California is an example of a state that will not accept any records for owners with addresses in other states.

Another issue is that the states involved may have different filing dates. Some states have their report due dates in the spring and most are due in the fall.

If you don’t take the state due dates into account and wait until fall to file your records, you may have some state records in the report that were actually due in spring. You are responsible for these records that did not go to the appropriate state on time. This may open you up to fines, penalties, or even make you a target for an audit.

So you can see, this really does become more complicated than it seems!

The best practice is to make sure that you file the properties directly to the appropriate state by the correct due date. While it may take a bit longer to file multiple reports, when you are done you will have the peace of mind knowing that you have reported correctly.

Jan Knott

Account Executive

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