An audit for unclaimed property will examine outstanding amounts for the previous ten years (the federal government requires records be kept for seven years).
Unclaimed property is not a tax and does not have the same remedies found in sales and use tax audits. Audited amounts due can only be challenged through the courts.
At Streamline, we encourage companies to pay greater attention to their unclaimed property liability, including unclaimed assets, ensuring the company properly reflects the liability. “Unclaimed” constitutes that the check, rebate, or store credit must have remained unclaimed or un-cashed for three years.
Some key points to consider:
- There is no filing for re-determination, adjudication, or dispute resolution.
- There is no statute of limitations on unclaimed property. In cases where the state feels it would be beneficial to carry the audit back further than thirteen years (ten years plus the three-year outstanding period) it is within its right to do so.
- Penalties and interest will also be assessed in the audit and given the length of the audit period; these amounts can become overwhelming very quickly.
Contact Streamline Texas Sales and Use Tax consultants today for a free evaluation and consultation at (972) 838- 1914