On August 17, 2022, the California Senate passed A.B. 2280, progress forward in establishing a voluntary disclosure program (“the program”) for qualified unclaimed property holders. As reported previously, this program would allow companies to become compliant without incurring a 12% per year interest assessment on the outstanding unclaimed property remittances. This would be the first such amnesty program for unclaimed property since 2000.
To be eligible for the program, holders of unclaimed property would have to comply with the following terms:
- The holder could not be a subject of an examination or could not have received notice of an examination of unclaimed property,
- The holder could not be the subject of a civil or criminal examination related to compliance with the state’s unclaimed property statutes,
- The holder could not have had an interest assessment under unclaimed property statutes within the past five years that remains unpaid, and
- The holder could not have had an interest assessment waived by the Controller in the past five years.
It is important to note that recent changes in the law allowed questions regarding unclaimed property compliance to be added to this year’s corporate income tax return, due November 15. The disclosure requires checking a box to confirm whether or not the company has reported and remitted unclaimed property to California.
The bill is currently awaiting Governor Gavin Newsom’s signature.
Please reach out to our team of unclaimed property professionals if you need assistance in this area.
TECHNICAL INFORMATION CONTACTS:
Mark A. Paolillo
Principal
Ryan
857.288.1976
mark.paolillo@ryan.com
Susan Han
Principal
Ryan
442.244.2447
susan.han@ryan.com
Jeff Henshall
Principal
Ryan
404.682.1200
jeff.henshall@ryan.com
Christopher Jensen
Principal
Ryan
469.399.4142
christopher.jensen@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.