Any business with a Federal Employer Identification Number (FEIN) in possession of property belonging to another person or business is required to file an unclaimed property report with the Pennsylvania Department of Treasury by April 15th.
What is unclaimed property? Unclaimed property, also known as abandoned property, includes savings accounts, unpaid wages, accounts payable, gift certificates, dividend proceeds, money orders, paid-up life insurance policies, utility deposits, and contents of safe deposit boxes.
When is property considered to be unclaimed or abandoned?Property becomes abandoned after its rightful owner does not claim it within a significant period of time known as the dormancy period. The most common dormancy period has just been reduced from five years to three years. However, depending on the type of property, different dormancy periods may apply. A full listing is available on the Pennsylvania Treasury’s website.
What if my business doesn’t have unclaimed property? If your business does not have unclaimed property you may file a “negative report” with the state, although it is not required.
If your business does have unclaimed property, it is important that you timely file a report with the PA Department of Treasury. Unclaimed property audits can be costly and require a significant time commitment. If unclaimed property is found under an audit, the state may assess examination fees up to the amount of the property not reported. In addition, penalties may be assessed starting at $100 for each day the report is withheld.