Legal Alert: Beware! Compliance Issues with State Unclaimed Property Laws Can Have a Devastating Impact on Your Business - Voluntary Disclosure May Reduce Exposure
June 30, 2009
Did you know that compliance issues with unclaimed property laws can create more than just potential exposure with the state taxing authorities? Failure to comply can also create regulatory problems that could dwarf the state liability exposure. Unclaimed property laws are intended to prevent a business from realizing a windfall if the business holds the property of another party. States have specific rules about how this property must be handled, reported, and transferred to the states. If these rules are not followed completely, the consequences can be significant and, for publicly traded companies, may lead to a Securities & Exchange Commission investigation or other collateral consequences.
©2024 Snell & Wilmer L.L.P. All rights reserved. The purpose of this publication is to provide readers with information on current topics of general interest and nothing herein shall be construed to create, offer, or memorialize the existence of an attorney-client relationship. The content should not be considered legal advice or opinion, because it may not apply to the specific facts of a particular matter. As guidance in areas is constantly changing and evolving, you should consider checking for updated guidance, or consult with legal counsel, before making any decisions.