Our Unclaimed Property Team reviews Delaware SB 281, which would grant additional power to the State Escheator. This bill: Attempts to clarify Delaware’s unclaimed property laws. Codifies practices the State Escheator implemented after the enactment of 2021’s SB 104. Has the potential to trigger additional holder and owner litigation. Read the full advisory here. [...]Read more The post Litigate, Legislate and Repeat: The Delaware Escheat Law Spin Cycle appeared first on Alston & Bird Tax Blog ..read more

Our Unclaimed Property Team reviews California AB 2280, which would allow the State Controller’s Office to establish a new California Voluntary Compliance Program. The proposed VCP would be available only to certain holders To qualify for the interest waiver, a holder would be required to participate in an educational training program and meet other requirements The controller would be authorized to reinstate interest for any holder that does not comply with reporting and payment requirements Read the full advisory here. [...]Read more The post California Dreaming of a Voluntary Compliance Pro ..read more

Where there’s a carrot, there’s usually a stick. Our Unclaimed Property Team analyzes Delaware’s new permanent expedited examination program and finds potential issues that could be more than a holder may have bargained for. What will be found in a Request to Expedite Completion of Unclaimed Property Examination?Delaware’s Office of Unclaimed Property fails to clarify or offer guidanceThe deadline for filing a request is September 30 Read the full advisory here. [...]Read more The post Look Before You PEEP – Delaware OUP Rejects Bid to Address Issues with Program and Agreement appeared first o ..read more

Our Unclaimed Property Team reviews the report of the U.S. Supreme Court’s Special Master parsing the definitions of “money orders” and “similar instruments” and how those words decide if certain unclaimed property falls under federal common law or the federal Disposition of Abandoned Money Orders and Traveler’s Checks Act. The report is a master class in statutory constructionThe Special Master analyzed MoneyGram “official checks” to determine those meet three statutory conditions for an instrument to constitute a “similar instrument”This analytical framework may have broader [...]Read more T ..read more

Our Unclaimed Property Team examines a pair of fast-tracked Delaware bills that would reform a swath of the state’s escheat laws in response to ongoing litigation and other disputes over audits and voluntary disclosure agreements. Defining, reporting, and liquidating virtual currencyAdopting a permanent expedited audit programRescheduling statutes of limitation, audit periods, and dormancy periods Read the full advisory here. [...]Read more The post Bracing for the Next Wave of Delaware Unclaimed Property Reform: Review of SB 103 and SB 104 appeared first on Alston & Bird Tax Blog ..read more

State governments’ quest for revenue in the wake of the pandemic will only heighten their focus on unclaimed property. Our Unclaimed Property Team highlights the consumer protection and privacy risks facing companies when states use third-party auditors to obtain information on accounts with small balances. The top 6 challenges facing holdersHow these issues can affect your bottom lineSteps the C-suite can take to prepare Read the full advisory here. [...]Read more The post Top Unclaimed Property Regulatory and Enforcement Challenges in 2021 appeared first on Alston & Bird Tax Blog ..read more

Our Unclaimed Property Team has created FAQs to stimulate review of the numerous challenges associated with the potential escheatment of traditional IRAs and other tax-advantaged retirement assets. How does ERISA play a part?Why would a custodian voluntarily escheat an ERISA-governed plan asset or distribution?What safeguards can a custodian rely on? Read the full advisory here. [...]Read more The post FAQs on Unclaimed Property Aspects of Retirement Assets appeared first on Alston & Bird Tax Blog ..read more

A Delaware court quashed a subpoena aimed at an unclaimed property holder, but the victory may be short-lived. Our Unclaimed Property Team explores the latest court decision addressing a subpoena for records dating back to the 1990s. The subpoena asked for every check issued from 27 accounts over 20 years, including cleared and voided checks and checks issued to payees in other statesThe court found the subpoena too expansive and unreasonableThe third-party auditor’s incentives and motives were called into question Read the full advisory here. [...]Read more The post Pushing Beyond the Limit ..read more