Unclaimed Property Audit Strategies: Responding to Latest Developments

Description

Financially struggling states continue to devote more resources to unclaimed property audits, in anticipation of high returns. Companies may not realize the potential exposure of rolling uncashed vendor checks, unused gift cards, or abandoned escrows or other deposits into income.

Businesses may be willing to risk a state audit. Still, state tax professionals must prepare for the unique nature of these exams and stay abreast of recent developments with unexpired Groupon-type coupons, ramped-up exams of securities, and related corporate and class action litigation.

Documentation standards are quite different from other taxes. Common errors—such as failing to report all types of financial assets or overlooking those from third-party contracts—must be avoided. Tax executives must track favorable or unfavorable unclaimed property laws.

Listen as our panel of experienced state tax professionals gives the reality of unclaimed property audits and offers proven strategies to help your company better prepare for audits and improve future compliance.

Outline

1. Examples of state laws, compliance and rulings in unclaimed property
   1. Which states have more aggressive laws or more draconian penalties
      1. Delaware considers shortening audit period
      2. Corporate challenges from American Express, Staples, others
      3. Other examples
2. Related current developments
   1. Issues arising from Groupon-style online coupons
   2. Tougher exams on securities and insurance products
3. Common taxpayer mistakes with unclaimed property
   1. Not reporting all property types or in all jurisdictions
   2. Folding property back into income
   3. Not considering reporting obligations arising from third-party contracts
   4. Using inappropriate dormancy triggers
   5. Other examples
4. Common red flags drawing states' attention
   1. Where the company is incorporated or domiciled
   2. Decentralization of company books and records
   3. Conducting business in numerous states but reporting property to one or a few
   4. Other examples
5. Audit tactics to expect during unclaimed property exams
   1. How a revenue agency will behave vs. a third-party audit firm
6. Best practices for the taxpayer during the unclaimed property audit
7. Documentation improvements to undertake going forward

Benefits

The panel will explore these and other relevant topics:

• Categories of property that cause the biggest headaches—those that corporate taxpayers know well and those you might not expect.
• Common mistakes companies make in their compliance—and how to correct them now.
• Best practices to prepare for your next unclaimed property audit.
• Tactics to anticipate from a third-party auditor hired by the state revenue department.

Upon completing this seminar, you will have a better awareness of varying state approaches to unclaimed property compliance and recent related developments. You also will be familiar with new approaches that will help minimize or avoid a potentially substantial bill for tax, interest and penalties.

NASBA CPE Sponsor

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.

CPE Credit

Strafford is a NASBA CPE sponsor and our live seminars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.

Our Guarantee

Strafford webinars and teleconferences are backed by our 100% Unconditional Money-Back Guarantee: if you are not satisfied with any of our products, simply let us know and get a full refund. For more information regarding complaints and refunds, please contact us at 1-800-926-7926 ext 10.