Noncompliance With Unclaimed Property Reporting Requirements Can Prove Costly

Every state has an unclaimed property (UCP) law that requires businesses to regularly report their UCP holdings. Some states, including Illinois, even require "negative reporting" by businesses that believe they do not hold any UCP. Noncompliance can lead to costly state audits, and nearly every business is at risk.

For most businesses, the annual reporting deadline for Illinois is May 1, so you may not have much time to take the necessary steps to ensure compliance.

UCP LAWS IN A NUTSHELL

UCP generally is defined as property that the owner has not claimed for a specified "dormancy period" set by law. In Illinois, the dormancy period varies by property type. For most property, the dormancy period runs three years. A notable exception to this dormancy period is an employee paycheck, which has a dormancy period of only one year.