| UCPR - 1 |
Who reports unclaimed property?
All businesses and state agencies are required
to report unclaimed property to the state of the owner’s
last known address. Federal government agencies, such as the Internal
Revenue Service, do not report unclaimed property
to the states.
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us if you need more information.
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| UCPR - 2 |
When is property considered abandoned?
Generally, property is considered abandoned if
a business has been unable to contact the owner
and there has been no customer-initiated activity
in an account for five years. The length of time that a
business may hold property before reporting it to the state
depends upon the type of property. To view a partial listing
of property types and dormancy
periods, click here.
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us if you need more information.
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| UCPR - 3 |
What are businesses required to do to locate the rightful
owner?
By law, businesses must make a good-faith
effort to locate the true owner(s)
before reporting the unclaimed property to the appropriate
state(s). Idaho law requires that a written notice be sent to
the owners at their last known address when:
-
The address for the owner appears to be accurate
- The property has a value greater than $50 dollars
These letters are referred to as "Due
Diligence Letters" and must be sent not more
than 120 days before the property is due to be reported (See
Unclaimed Property Law Section 14-517).
The business needs to identify the property that is being held
for the owner and inform him that the property may be turned
over to the state. For an example of a due diligence letter, click
here.
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us if you need more information.
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| UCPR - 4 |
Does the state of Idaho require businesses to send
"Due Diligence Letters" by certified mail?
No. Each state has their own requirements, but Idaho does not require certified mailings of due
diligence letters.
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us if you need more information.
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| UCPR - 5 |
When the statements or notices that I send are
not
returned by the post office, doesn’t this prove that the
owner is aware of their property?
No. There are a variety of circumstances and
reasons why a statement or notice may not be returned by the
post office. The mail may have been delivered incorrectly and
the recipient may simply not bother to send the mail back to
the post office. It is possible the mail was delivered to the
owner correctly, but was discarded accidentally as junk mail.
Unfortunately, there is no way to know for certain. It is the
responsibility of the business to prove that the property is
not abandoned.
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us if you need more information.
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| UCPR - 6 |
How can holders of unclaimed property prove that property
has not been abandoned?
If you can show that the owner initiated a
transaction or has more than one account, one of which is
active, this would be sufficient proof. You may wish to
cross-reference these accounts to avoid reporting the inactive
account while the customer is still actively doing business
with your organization. Also, correspondence from the
customers, such as signed W-9 forms (Request for Taxpayer
Identification Number and Certification) or change of address
notifications is proof of awareness.
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us if you need more information.
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| UCPR - 7 |
What is the deadline for filing unclaimed property reports
for the state of Idaho?
The unclaimed property report must be filed by
Nov. 1. To view a suggested timeline for your unclaimed
property reporting, click here.
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us if you need more information.
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| UCPR - 8 |
Does the state of Idaho require a business to file a report
each year even if there is nothing to report?
No. Idaho requires a
business to file a report if they're holding property
that is required to be reported. Contact
us if you need more information.
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| UCPR - 9 |
Does the state of Idaho require a business to report
property with a value of $50 or less?
Idaho exempts
property valued at $50 or less from being reported if you are
incorporated in Idaho. You may
report this property voluntarily, but it is not required. You
must, however, report property valued at $50 or less when it
belongs to individuals or businesses with an address in
another state, or if your business is incorporated in another
state. (See
Reciprocity
Procedures.)
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us if you need more information.
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| UCPR - 10 |
If a business decides to voluntarily report property with a
value of $50 or less to Idaho, can these items be reported in
aggregate (one sum total)?
You can report these items in one sum
total. However, holders are required to maintain owner
information in their records. We suggest you provide the owner names
and amounts due to each owner whenever possible so that the
property can be advertised and returned to the owner.
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us if you need more information.
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| UCPR - 11 |
Can a business request an extension of the deadline to file
an unclaimed property report?
Under certain circumstances, the unclaimed
property program administrator may grant an extension beyond
the Nov. 1 filing date. To request an extension, please do the
following:
-
Submit your request in writing on company letterhead.
Request must be postmarked by Oct. 1 in order to get a response prior to
the Nov. 1 report deadline.
- Provide your federal Employer Identification Number
(EIN). A separate request for each EIN is
required.
- Tell us how long of an extension is needed and why you need
more time
- Let us know if your final report will be on paper,
CD, or filed electronically.
Please mail or fax your request to:
Unclaimed Property
Administrator
Idaho State Tax Commission
P.O. Box 70012
Boise, ID 83707-0112
Fax: (208) 334-5366
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us if you need more information.
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| UCPR - 12 |
Can a business turn over unclaimed property to the state of
Idaho early?
Yes. Businesses may report property before the
normal dormancy period has
passed under the following conditions:
-
The business has tried to contact the individual and;
- The business has allowed a reasonable period of time for
the individual to contact them and;
- Idaho’s unclaimed property administrator has granted
permission to the business to report early.
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us if you need more information.
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| UCPR - 13 |
Could my business be required to file an unclaimed property
report in several states?
Yes. The United States Supreme Court ruled in
Texas vs. New Jersey that a business must report the property
to the state of the owner’s last known address. However,
many states participate in reciprocity programs, or voluntary
exchange agreements, that allow your business to prepare fewer
reports. The state receiving the report will forward the
property to the other appropriate
state(s). Idaho attempts to exchange
property with all 50 states, Washington
D.C., and Puerto Rico.
If the business does not have a last known
address for the owner, then the business must report the
property to the state where the business is incorporated, or
if not incorporated, the principal place of business.
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us if you need more information.
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| UCPR - 14 |
Can a business request reimbursement from the state of
Idaho for property already reported?
Yes. If the owner receives payment directly
from your business, the state of Idaho’s Unclaimed Property
Office will reimburse you. You must send a written request for
reimbursement on your company’s letterhead, a copy of your
photo identification along with proof
that the owner has received the property, such as a photocopy
of the canceled check from your bank statement.
We encourage you to use the reimbursement
process for your customers and we'll make every effort to
respond to your request for reimbursement as quickly as
possible.
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us if you need more information.
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| UCPR - 15 |
Does
the state of Idaho charge interest or penalties for not
reporting unclaimed property?
Yes. Interest is assessed at a rate of 12% per
year on the value of the property from the date the
property should have been paid or delivered to the
state. Failure to pay or deliver property within
the prescribed time may be assessed a penalty
on the value of the property from
the date the property should have been paid or delivered
to the state until actual delivery is made.
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us if you need more information.
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