Welcome to the Tax Insights Podcast, where we break down complex tax topics into bite-sized how-tos.
In this episode, Jeff Dvorachek discusses unclaimed property and what business owners need to know. He explains the process of sending unclaimed money to the state and highlights resources like missingmoney.com to claim funds. Let’s dive in!
On today’s episode of Tax Insights, Jeff discusses unclaimed property. He explains how businesses must send unclaimed money, like unpaid wages or customer refunds, to the state after a certain period. He highlights resources like missingmoney.com for checking if the state is holding any of your money and how to claim it. Tune in for tips on managing unclaimed property and staying compliant with state regulations.
Host: We’re talking about unclaimed property here today in the program, and Jeff, walk us through this.
Jeff: Yeah, I was talking to somebody the other day, and they weren’t aware that you can actually go online and do a search to see if the state is holding any of your money. So let’s talk about that a little bit.
Host: Alright, so I know that we did this a long time ago because, at that time, I went on that website that you shared, and I found like 50 bucks that I was owed, and I got that 50 bucks because of this.
Jeff: Yeah, I remember you telling me that story. So let’s talk about, number one, how the money got there, and then also how you went there and got your money back.
Host: Please do.
Jeff: So what happens is every state has a little bit different regulations, but in general, if a business owner has unpaid wages, pays somebody with a check, and that check never gets cashed, or let’s say their customer has a refund, or there are some dormant accounts or just any unclaimed checks that are just sitting in your outstanding checks when you do your monthly bank reconciliation. You’re not allowed to keep that money after a certain period of time. You have to send it to the state so the state can try and find that person. And there’s a process for doing that. What I would recommend to people is to go to the state’s website, go to unclaimed property, and there’s a publication there for business owners on exactly how to do it.
Host: Okay, I want to do it. It’s just to make you aware that it’s something that you really should be doing as a business owner.
Jeff: Right. So, if you owe someone money and you can’t find them, that doesn’t mean that you just get to sit on that money. This is where you give it to the state and now have the state deal with it.
Host: Right, and you want to do that right away because there are different limits on how long you can keep that money. So, unclaimed payroll checks, you only have a year before you have to send that off to the state. Whereas, if you have a customer refund that you can’t find that customer, you have up to five years before you have to send it to the state. So you really want to look at that publication to figure that out.
Host: So let me ask you, Jeff, let’s say I as a business owe someone money. I can’t find them. I send it to the state, and that individual then comes, finds me, and says, “Hey, you owe me money.” How do we then say, well, you now you have to deal with the state? I mean, is that essentially what that is?
Jeff: That’s exactly how it works because once you send it to the state, it’s essentially in their hands, not yours. But the easy part is, let’s get to that second part of our conversation, which is where you did the search. You can go to what’s called missingmoney.com. Each state also has one, but missingmoney.com is probably the easiest place to go. Just look up your name, and it’ll tell you whether you have some funds that are just sitting at the state waiting to be claimed. Then you just go through the procedure of essentially proving that you’re you, and the state will send you that money.
Host: There we go. Yeah, it’s simple enough. Missingmoney.com, I’m going there right now, and I am looking for my name, and I don’t see anything. Bummer.
Jeff: Maybe next time, maybe next time.
Host: Jeff, great information each and every week here on Tax Insight. How would our listeners reach out to you guys if they have questions regarding any of this? If they are a business and they need help, what’s the best way to connect with Hawkins Ash?
Jeff: Yeah, my first stop would be going to HawkinsAsh.CPA and specifically that CPA-HQ section because there’s plenty of information there to guide you for everything that you’re going to need from tax strategies all the way to financial planning.
