Unclaimed property can consist of stocks, bonds, cash or other property that your corporation has in its possession that may have reached the legal holding period. In addition, safe deposit box contents are delivered as unclaimed property too. Under a law passed by the Indiana General Assembly in 1967 and revised in 1995, personal property and money that has gone unclaimed for some time must be turned over to the Attorney General's Unclaimed Property Division. Under state law, unclaimed property must be returned to the state after it has been left with a "holder" such as a bank, insurance company, or other business or organization, and there has been no owner-generated activity in the account for a specific period of time and the company's attempts to contact the owner have been unsuccessful.
If your legal entity is a business association (corporation, partnership, etc.), governmental agency, or nonprofit you are probably required to file annual reports of unclaimed property.
Unclaimed property laws were enacted to prevent holders of unclaimed property from taking citizens' unclaimed property and recognizing it as business income. This law gives the state an opportunity to return money to its rightful owners and provides Indiana citizens with a single source, the Office of the Indiana Attorney General, for unclaimed property that has been reported by holders from Indiana and around the nation.
The Indiana Attorney General's Unclaimed Property Division strongly encourages online reporting.
Remember: Indiana law requires that records be retained for ten (10) years after being remitted to the State.
Every state, including Indiana, has annual filing dates for which holders are expected to comply. Indiana has a November 1 annual reporting deadline. The one exception in Indiana is for life insurance companies, which must report on May 1. Indiana has the right to assess interest and penalties for noncompliance.
The first annual filing with a state is called "initial compliance." Thereafter, reporting falls under Annual Compliance. Initial compliance should take into account all property types held by a corporation. In other words, if a company asks its Stock Transfer Agent to commence reporting of Capital Stock and Dividends, the company should be prepared to analyze its books for other property such as payroll checks, vendor checks and customer credits and report them as well.
Property is reported based on its dormancy or abandonment period. States are generally known as three (3-), five (5-) or seven (7-) year states. Indiana is considered a three (3-) year state. After property goes unclaimed for the requisite number of years it is eligible for reporting. Within a given state, there can be different dormancy periods depending on the property type. For example, Indiana requires payroll checks be reported after a one (1-) year dormancy.
Companies that have a history of reporting should be sensitive to changes in business practices that can give rise to new property types. Also, when companies are acquired, an analysis of their operations should be made to identify all reportable property types. The acquiree should conform to the acquirer's reporting rules.
Please note our website NAUPA codes have changed!
Our property codes and unclaimed property online reporting database have been updated to mirror the 2011 National Association of Unclaimed Property Administrators (NAUPA) codes.
Note: If you are using a property type code(s) that does not match our current property code listing, the system will give you an error message and an opportunity to individually correct or mass change the code(s) on your report to reflect the current applicable property code before uploading it to the system.
Indiana expects to receive property for the benefit of lost owners. How do they become lost? Addresses change, the property is lost or misplaced, records of amounts owed are destroyed, people pass away without adequate records of assets, etc.
Indiana does not want to receive the property of an owner who has an ongoing relationship with the holder or whose last known address in the holder's records is actually their current address. For this reason, Indiana and other states require that holders attempt to contact the owner about the property in advance of reporting it.
Indiana statute IC 32-34-1-26 (opens in new window) requires that due diligence be performed on all unclaimed property of $50 or more.
Due diligence checklist
If you have performed all of the tasks described below, you have fulfilled your due diligence responsibility as a holder:
In 1954, the U.S. Supreme Court ruled in Texas v. New Jersey that the last known address of the owner determines the state to which unclaimed property is reportable. Furthermore, where the owner address is missing or incomplete, the asset is reportable to the state of incorporation of the holder. In addition, if the last known address is in a foreign country, the asset is reportable to the state of incorporation of the holder. Based on these rules, the addresses contained in a holder's database of dormant property determine which states should receive a filing. In addition, requires a zero report even if there is nothing to report. The practical effect of these rules is that property can be reportable to many more states than those in which the company has a presence or does business.
"Negative" or "Zero" annual reports reflecting that no unclaimed property is held by the holder or business enterprise are not statutorily required. However, submission of such reports is strongly encouraged and deemed to be a best governance practice by most corporate legal and accounting advisors. Filing an annual "zero report" demonstrates an entity's awareness of the legal requirements of the unclaimed property act and compels a recurring annual book and records review to assure that the reporting entity maintains good standing with the State; and that appropriate properties or accounts are reported and turned over to the Unclaimed Property Division when appropriate. Click here to submit a zero report.
Yes. If audited, the Holder will be responsible for the full cost of the audit and any associated administrative expenses.
The penalties for failing to file a report are $100 per day the report is late, up to $5,000. A holder who intentionally fails to pay or deliver property is subject to an additional civil penalty of 10% of the value of the property that must be paid or delivered. A holder that willfully refuses to pay after written notice commits a Class B misdemeanor.
For additional information please see IC 32-34-1-45 (opens in new window).
Yes. They are reported in the same manner; however, we request the safe deposit box report to be separate from your regular annual report.
Tangible property held in a safe deposit box or other safekeeping depository shall be delivered to the attorney general not later than thirty (30) days after the date the report describing the property is filed.
Safe Deposit Boxes shall be delivered no later than thirty (30) days after the date the report is filed per IC 32-34-1-27(C). The Safe Deposit Box Annual Report, however, should be filed online by November 1.
Note: This office prefers that all the boxes on a report be delivered at one time. If you cannot deliver all the boxes at one time you must provide this office with a list of delivery dates.
Please visit this link: 2016 Securities Instructions.pdf
Please visit this link 2016 Mutual Fund Instructions.pdf
No. Gift cards and gift certificates are exempt.
Extensions may be considered but must be requested in writing no later than thirty (30) days prior to the reporting deadline. Extensions are requested on corporate letterhead and must include the company name, FEIN, length of extension and a reason why the extension is needed. Extension request forms can be submitted via fax or regular mail by using this form.
Generally speaking, foreign subsidiaries are not subject to U.S. unclaimed property laws. One exception could be dollar denominated disbursing accounts maintained in U.S. banks. However, as foreign governments enact unclaimed property laws, such as the recently enacted laws in Canadian provinces, additional levels of liability are created.
As a U.S.-domiciled entity, a company with foreign owners is subject to U.S. unclaimed property laws.
A copy of the dissolution should be sent to this office. You can find the appropriate forms by clicking the following link http://www.in.gov/sos/business/2426.htm.
The Indiana online reporting software application guarantees secure access through the use of reCaptcha. The online reporting software application will require users to create their own specific operator ID and password that positively identifies them and their specific level of access. All passwords are generated and encrypted using industry-standard best practices and non-reversible encryption algorithms, and managed in different tiers within the application infrastructure. No staff member or external user is able to access a user's password. The system also employs user-initiated reminders and email activation techniques.
All system traffic is encrypted using an industry standard 256-bit SSL.
If you are new to our online reporting software or would just like a refresher, we are offering webinars as guidance to using Indiana's online reporting software. This is the software necessary to submit your annual unclaimed property report to the State of Indiana. Please see dates below. Additional sessions can be scheduled according to interest, volume and request.
If you are interested in attending a webinar, please click here to register.
Each session will occur @ 2pm EST.