1. Escheat & Unclaimed Property
JMS Advisory Group, LLC
Escheat & Unclaimed Property
Discussion
Douglas M. Halka
Director
James O. Santivañez
Director

2. Who We Are
Attorneys, CPAs and Former State Agency Officials Experienced in Unclaimed Property Matters
Specialists in Complex Company Reviews & Designing Internal Compliance Systems For Clients
Client Advocates/No Conflicts of Interest
Serving Primarily the Fortune and S&P 500
Unclaimed Property & Escheat Consulting Is All We Do

3. What We Do Voluntary Disclosure Audit Defense
Quantification & Analysis Of Exposure
Negotiation on Clients’ Behalf
Audit Defense
Defense Strategy
Documentation Preparation
Negotiation
Annual Reporting & Compliance
Outsourcing/Co-sourcing
Report Review
Asset Recovery
Asset Identification
Claims Preparation
General Consulting
Policy & Procedure Development
Litigation Support
Planning
Gift Certificates/Cards

4. What is Unclaimed Property?
Seems like a tax, but unclaimed property that must be turned over to a state is not a tax in any sense
More of an “obligation” as opposed to a tax on income, property, or transactions
However, states are clearly utilizing unclaimed property laws to generate revenue
Terminology: Unclaimed/Abandoned Property; Escheat

5. Current Environment States Are Looking For Revenue
Audit & Legislative Activity Is Picking Up
States Are Using Third Party Audit Firms
Administrative Burden Shifting To Holders
Uniformity Doesn’t Exist
Little Guidance In The Area

6. Industry Specific Issues
Car Dealerships
Payroll , Vendor Payments, Workers’ Comp
Customer Deposits
“We owe” obligations
Use of Agents
Insurance
P&C Insurance
Life Insurance
Workers Comp

7. Industry Specific Issues
Law Firms
Trust & Escrow Funds
Settlement Checks
Construction
Payroll
Bond Postings/Deposits
Manufacturing
Payroll, Payables, Receivables, Inventory Management

8. Scenarios & What to Do Next
Self-review: Controlled Liability/Exposure Analysis
Receive Reporting Package From State
Receive Compliance Letter From State
Receive Audit Notice From State
Proactive vs. Reactive Approach