Do you own or operate a business in Kansas? If so, you may have some unclaimed property that you need to report to the state. Unclaimed property is any asset that has been abandoned or forgotten by its rightful owner for a certain period of time. Examples of unclaimed property for most businesses include uncashed checks, unclaimed wages or refunds.
Why should you care about unclaimed property? Because if you don’t report it to the state, you may face civil and criminal penalties. Also, by reporting unclaimed property, you are helping reunite rightful owners with their lost or forgotten assets. You are also fulfilling your legal obligation and avoiding potential liability.
How do you know if you have unclaimed property to report? You need to review your records and identify any assets that have been unclaimed or uncashed for a certain number of years. For most types of property, the time frame is 5 years using an “as of” date of June 30 of the current year1. However, there are some exceptions for certain types of property, such as traveler’s checks (15 years) or money orders (7 years)1. You also need to have lost contact with the owner for an asset to be considered unclaimed.
How do you report unclaimed property to the state? You need to file a report with the Kansas Unclaimed Property Division by November 1st for all businesses2. You can file your report electronically using the NAUPA format or an Excel spreadsheet2. You can also mail your report and payment (if applicable) to the Unclaimed Property Division. You need to include a summary sheet and a remittance sheet with your report2.
Before you file your report, you need to send a due diligence notice to the owners of the unclaimed property. This is a letter that informs them of their unclaimed property and gives them an opportunity to claim it before it is reported to the state. You need to send this notice for any property with a value of $100 or more (except for property in a dividend reinvestment plan or safe deposit box property, for which notice must be sent regardless of value)3. You need to send this notice at least 60 days but not more than 120 days before filing your report2.
What if you don’t have any unclaimed property to report? You don’t need to file a negative (zero) report with the state2. However, you need to keep track of any properties under $100 that are not reported until their total reaches $250, and then report them all together2.
If you have any questions or need more information about the Kansas unclaimed property requirements, you can visit the official website4 or contact the Holder Department at 785-291-3173 or KSHolder@treasurer.ks.gov2.
We hope this blog post has been helpful. Remember, reporting unclaimed property is not only your legal duty but also your social responsibility. By doing so, you are helping reunite owners with their assets and preventing fraud and abuse.
Should you have any questions on this topic or need assistance, Click Here to Schedule a free Call to talk to one of our professionals here at UCentric Solutions.