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Property Voluntary Disclosure Agreement

As can be seen above, unclaimed real estate coverage is a complex and extensive process. When considering an outsourced partner, it is generally a proven method to take into account a company that has experience in managing the intricacies of reporting unclaimed real estate. In the event of a low uniformity of laws between states, it is a matter of juggling the various due diligence shipping data and dollar thresholds and opposing the requirements for filing and paying for electronic documents. The company must decide whether it is forming internal resources according to the various state reporting rules or outsourcing to a competent company. If internally, we recommend reviewing a software system to help manage data, track deadlines and rest times, track due diligence responses, and generate status reports and files formatted by the National Association of Unclaimed Property Administrators (NAUPA). State unclaimed ownership rules are constantly evolving and software vendors should keep their systems up to date with such changes. Keane helps businesses become familiar with the complex and unclaimed landscape of real estate files and properly declare unclaimed real estate. Our goal is to help you get full compliance and avoid hefty fines and penalties. For a company that has not yet submitted unclaimed real estate reports, completing a voluntary disclosure agreement is a method of reducing your audit risk. While no sector is “safe” from an unsolicited real estate review, the benefits of a voluntary escheat deposit can be significant to avoid such a situation. The waiting period for an unclaimed VDA property is 10 years.

For questions about VDAs for unclaimed real estate, call 800-321-2274 and select Option 2. In one case, Keane, after reviewing the company`s books and records, assisted management in submitting a VDA that waived all applicable interest and penalties and achieved significant savings on the limited scope of a VDA. In a second case, we learned that the client had undeclared obligations in 49 states. The analysis revealed more than US$7 million in outstanding assets, with a potential fine of $17.4 million. Our consultants helped the company structure and filed several VDAs to avoid fines and penalties. The initial commitment was reduced by 83 per cent. More valuable, however, the company avoided 81 percent of the possible interest penalties. By law, the company is required to declare this property in the state of its last known address or in the founding state of the company. The company should analyze the remaining liability and decide whether it will begin to report annually in the future or whether it could file additional VDA reports. Factors that should help determine the direction to go are possible penalties and interest by state, possible exceptions and deductions, and the availability of internal resources. Holder Handbook: The Department of Finance (“DOF”) updated and published the Escheat Manual (“Handbook”) in February 2018.

The manual gives owners instructions to make reports and transfers of abandoned or unclaimed property. After both parties sign the VDA, BART sends the VDA executed with the corresponding notification forms. Tax data and voluntary payment of taxes are due within 60 days, as agreed. The Comptroller`s office reserves the right to refuse the waiver of the penalty and/or interest or to cancel the contract in its entirety if the entity does not comply with the program`s guidelines and procedures.