Unclaimed property reporting for businesses: what holders must do

Who must report: holders

The duty falls on the holder. The Uniform Law Commission’s 2016 model act defines a holder as a person obligated to hold property for the owner’s account, or to deliver or pay it to the owner.³ For most businesses that means any money or property they owe to someone else and have not been able to return, such as an uncashed vendor check or a dormant account. Each state’s own law decides exactly who must file and what; start with the state’s page in the list of states.

What counts as unclaimed property

Unclaimed property can be intangible, the most common kind, such as uncashed paychecks and stocks, or tangible, such as safe deposit box contents.¹ Common forms include checking and savings accounts, uncashed dividends and payroll checks, customer overpayments, insurance payments and refunds, and in some states unredeemed money orders or gift certificates.¹ After a set period with no activity or owner contact, the dormancy period, it must be turned over to the state.¹ The period differs by type of property, from one to 15 years under the various uniform acts;³ see the dormancy table.

Which state gets it

The U.S. Supreme Court set the priority rules in Texas v. New Jersey (1965), and they were written into the 1981 uniform act:³

1. The state of the owner’s last known address in your records.³
2. Your state of incorporation if you have no address for the owner; for sole proprietorships, partnerships and other unincorporated holders, the state of the principal place of business.³
3. Some states claim a third priority, the state where the transaction took place, when neither of the first two takes custody.³

Money orders, traveler’s checks and similar instruments follow a federal law instead: the state of purchase, when your records show it.⁸

The yearly cycle

1. Review your books and records to identify unclaimed property in your possession.⁹
2. Notify owners. Some states require a due-diligence letter before you report. California requires businesses to notify owners by mail when property will become reportable within 6 to 12 months.⁹ Delaware requires a notice 60 to 120 days before filing when your records hold a valid mailing address and the property is worth $50 or more, or is a security of any value.¹⁰
3. File the report and remit by each state’s deadline. The reporting deadlines table gives each state’s dates.
4. Keep records. The 2016 model act sets a 10-year record retention rule and a 10-year limit on how far back an examiner can go;³ each state’s own law decides what applies to you.

Penalties and voluntary programs

California charges 12% interest a year on property not reported, paid or delivered on time, unless the delay has reasonable cause.⁵ For willfully failing to report it fines $100 a day, up to $10,000.⁵ Kansas charges $100 a day, up to $5,000, for willfully failing to file a report, and 25% of the property’s value for willfully failing to pay or deliver it.¹¹ Some states have voluntary disclosure programs for holders who come forward: California’s Voluntary Compliance Program waives interest for approved holders that complete training and meet its deadlines.¹² Florida does not assess penalties and fines under its voluntary disclosure program,¹⁴ and Kansas may waive penalties and interest for businesses in its Voluntary Compliance Program.¹⁵

Retirement plans

In Field Assistance Bulletin 2025-01, dated January 14, 2025, the U.S. Department of Labor said that, pending further guidance, it will not pursue ERISA section 404(a) violations when an ongoing pension plan voluntarily transfers benefits owed to a missing participant or beneficiary, including uncashed checks, to a state unclaimed property fund.¹³ The benefit’s present value must be $1,000 or less and the plan must meet the bulletin’s conditions,¹³ one of which is choosing the fund of the state of the participant’s last known address.¹³

Next step

Use the which-state tool to sort your property by state, then check that state’s dates in the reporting deadlines table. If you have nothing to report, see negative reports; for background on the law, see escheat explained.

Questions people ask

Which state do I report unclaimed property to?

To the state of the owner's last known address shown in your records; if there is none, to your state of incorporation, or for an unincorporated business the state of its principal place of business.³ Money orders and traveler's checks go to the state of purchase when your records show it.⁸

What if we have never reported?

Some states run voluntary disclosure or compliance programs for holders who come forward on their own. Florida does not assess penalties and fines under its voluntary disclosure program, which is closed to holders already under examination or audit;¹⁴ Kansas may waive penalties and interest for businesses in its Voluntary Compliance Program;¹⁵ California waives interest for approved holders that meet all of its program's requirements.¹²

Sources

Footnote numbers point here. Open "Quoted text" for the exact words relied on ("[…]" marks words left out).

1. What is unclaimed property? National Association of Unclaimed Property Administrators (NAUPA) · unclaimed.org · checked Nov. 3, 2026
   Quoted text (7)

   After a designated period of time (called the dormancy period) with no activity or contact, the property becomes “unclaimed” and—by law—must be turned over to the state.

   Unclaimed property can be intangible, which is the most common (ex. uncashed paychecks, stocks), or tangible (ex. safe deposit box contents).

   Checking or savings accounts

   Uncashed dividends or payroll checks

   Customer overpayments

   Insurance payments or refunds and life insurance policies

   Unredeemed money orders or gift certificates (in some states)

2. Delaware v. Pennsylvania, 598 U.S. 115 (2023), opinion Supreme Court of the United States · supremecourt.gov · Feb. 28, 2023 · checked Nov. 3, 2026
   Quoted text (1)

   To resolve the competing claims, we established that, as the primary (default) rule, the proceeds of abandoned financial products should escheat “to the State of the creditor's last known address as shown by the debtor's books and records.”

3. Revised Uniform Unclaimed Property Act (2016), text with comments Uniform Law Commission · uniformlaws.org · 2016-07 · checked Nov. 3, 2026
   Quoted text (8)

   “Holder” means a person obligated to hold for the account of, or to deliver or pay to, the owner, property subject to this [act].

   During a specified holding period (the “Holding Period”), which under the various acts varies from one to 15 years for different categories of property, the holder is required to attempt to notify the owner to claim his or her property.

   The rules for determining which state has the prior right to take custody of unclaimed property were set out by the U. S. Supreme Court in Texas v. New Jersey, 379 U.S. 674 (1965)

   Absent being able to determine the state of the owner’s last known address, the second priority state is the state of incorporation of an incorporated holder.

   For holders that are not corporations or limited liability companies, such as sole proprietorships and partnerships, and the second priority state is the state in which the unincorporated holder’s principal place of business is located.

   The first priority state is the state of the last known address of the owner if it can be determined from the records of the holder.

   Some states have gone further and created a “third priority” by asserting that if neither the first nor the second priority state provides for taking custody of the property, the state in which the transaction which gave rise to the property took place is entitled to take custody of the property.

   The revised Act reverts to the 1981 Act and provides a 10 year time bar on how far back of the end of the holding period an examiner can go, as well as specifies a 10 year record retention rule.

4. Reporting Guidelines (all panels) Kansas State Treasurer · missingmoney.ks.gov · checked Nov. 3, 2026
   Quoted text (2)

   Due diligence: Letters for items over $100, safe deposit boxes and stock should be mailed no more than 120 days and no less than 60 days before the report is filed.

   Reporting Due dates: November 1st for all business other than life insurance. May 1st for life insurance companies. If the reporting due date falls on a weekend the following Monday will serve as the due date. All items should be postmarked by the due date.

5. Unclaimed Property Law and Regulations (official SCO compilation of Code of Civil Procedure section 1500-1582 and 2 CCR 1150 et seq.) (PDF) California State Controller's Office · sco.ca.gov · February 2026 · checked Nov. 3, 2026
   Quoted text (3)

   (d) The report shall be filed before November 1 of each year as of June 30 or fiscal yearend next preceding, but the report of life insurance corporations, and the report of all insurance corporation demutualization proceeds subject to Section 1515.5, shall be filed before May 1 of each year as of December 31 next preceding.

   any person who fails to report, pay, or deliver unclaimed property within the time prescribed by this chapter, unless that failure is due to reasonable cause, shall pay to the Controller interest at the rate of 12 percent per annum on that property or value thereof from the date the property should have been reported, paid, or delivered.

   (a) Any person who willfully fails to render any report or perform other duties, including use of the report format described in Section 1530, required under this chapter shall be punished by a fine of one hundred dollars ($100) for each day such report is withheld or such duty is not performed, but not more than ten thousand dollars ($10,000).

6. Chapter 717, Florida Statutes (2026), Florida Disposition of Abandoned Personal Property Act The Florida Legislature · leg.state.fl.us · 2026 Florida Statutes · checked Nov. 3, 2026
   Quoted text (1)

   (11) The report must be filed before May 1 of each year. The report applies to the preceding calendar year.

7. Holder Deadlines Delaware Department of Finance, Office of Unclaimed Property · unclaimedproperty.delaware.gov · checked Nov. 3, 2026
   Quoted text (1)

   All Other: Holders, Business Associates, and Corporations December 31st March 1st Banking Organizations June 30th November 10th Insurance Companies December 31st December 20th

8. 12 U.S.C. 2503, State entitled to escheat or take custody U.S. Government Publishing Office (United States Code) · govinfo.gov · 2024 ed. · checked Nov. 3, 2026
   Quoted text (1)

   if the books and records of such banking or financial organization or business association show the State in which such money order, traveler's check, or similar written instrument was purchased, that State shall be entitled exclusively to escheat or take custody of the sum payable on such instrument, to the extent of that State's power under its own laws to escheat or take custody of such sum;

9. How to Report California State Controller's Office · sco.ca.gov · checked Nov. 3, 2026
   Quoted text (2)

   The first step of the reporting process is to search your books and records to identify any unclaimed property in your possession.

   California Unclaimed Property Law requires businesses to notify property owners by mail if they have property that will become reportable within 6-12 months.

10. Delaware Code Title 12, Chapter 11, Subchapter II. Unclaimed Property (§§ 1130-1191) Delaware General Assembly / Delaware Code Online · delcode.delaware.gov · current Delaware Code Online text (latest session law cited: 84 Del. Laws c. 368) · checked Nov. 3, 2026
    Quoted text (3)

    The holder of property presumed abandoned shall send to the owner notice that complies with § 1149 of this title in a format acceptable to the State Escheator, by first-class United States mail, not more than 120 days nor less than 60 days before filing the report under § 1142 of this title, or at any time as directed under § 1171(5) of this title, if both of the following apply:

    (1) The holder has in its records an address for the owner sufficient to direct the delivery of first-class United States mail to the owner, which the holder’s records do not disclose to be invalid.

    (2) The value of the property is $50 or more, unless the property is a security, in which case the holder must send notice to the owner regardless of the value of the property.

11. K.S.A. 58-3967. Interest and penalties Kansas Office of Revisor of Statutes · ksrevisor.gov · K.S.A. current as published Nov. 3, 2026; last amended L. 2014 · checked Nov. 3, 2026
    Quoted text (2)

    (a) A person who willfully fails to present a report to the administrator when due or to perform any other duty required by this act, other than payment or delivery of unclaimed property as required by this act, shall pay a civil penalty of $100 for each day the report is not presented or the duty is not performed, except the total civil penalty shall not exceed $5,000.

    (c) A person who willfully fails to pay or deliver to the administrator any unclaimed property as required by this act shall pay a civil penalty equal to 25% of the value of the property that should have been paid or delivered.

12. Voluntary Compliance Program (VCP) California State Controller's Office, Unclaimed Property Division · claimit.ca.gov · checked Nov. 3, 2026
    Quoted text (1)

    Approved and enrolled holders that fulfill all program requirements, including completing a training program and meeting reporting deadlines, will be eligible for waived interest on past-due unclaimed property reported under the program.

13. Field Assistance Bulletin No. 2025-01 U.S. Department of Labor, Employee Benefits Security Administration · dol.gov · Jan. 14, 2025 · archived copy, captured Sept. 10, 2026 (view capture) · checked Nov. 3, 2026
    Quoted text (2)

    Pending further guidance, the Department will not pursue violations under ERISA section 404(a) in connection with the voluntary decision to transfer retirement benefit payments (including uncashed checks) owed to a missing participant or beneficiary from an ongoing pension benefit plan to a state unclaimed property fund, provided the present value of the participant's or beneficiary's nonforfeitable accrued benefit is $1,000 or less and the plan fiduciary complies with the applicable conditions set forth in this memorandum.

    The plan fiduciary selects the state unclaimed property fund offered by the state of the last known address of the participant or beneficiary;

14. Chapter 69G-20, Florida Administrative Code (Unclaimed Property) - compiled rules PDF Florida Department of Financial Services · myfloridacfo.com · checked Nov. 3, 2026
    Quoted text (3)

    This compliance can be achieved using a program called voluntary disclosure.

    (b) Penalties and fines are not assessed by the Department.

    (a) Be currently under examination or audit;

15. Kansas Voluntary Compliance Program Agreement Kansas State Treasurer · missingmoney.ks.gov · checked Nov. 3, 2026
    Quoted text (1)

    The administrator shall have discretion to waive the payment of penalties & interest as described in KSA 58-3967 for businesses agreeing to participate in Kansas' Voluntary Compliance Program.