If you realize you have uncashed checks and/or financial assets (property) owed to a Texas vendor, client, customer or employee (the property owner) when reconciling accounts and performing reviews to close your books, you are considered a Holder.
Determining if the property is abandoned is the first step in reporting unclaimed property. To do that, you’ll need to figure out if you’ve had communication or other business dealings with the property owner during the abandonment period. This period varies according to the property type.
Next, a notice should be sent to each property owners. The notice should relay that if the owners do not claim the property, you are required to deliver the property to the Comptroller’s office by July 1.
Finally, you are required to submit the owner’s money and/or financial assets along with the owner information in a report to the Comptroller’s Office.
The 2020 Texas Unclaimed Property reports and remittance are still due July 1, 2020. Penalties and interest may be incurred for failure to file, and if a business has ever filed a report, they are required for file a $0 (negative) report, even if they have nothing to report for this period.
Here are significant deadlines:
- March 1: Annual cutoff date for required abandonment periods.
- June 30: Annual cutoff date for life insurance.
- July 1: Deadline for filing your report and remitting your property. Property may be remitted any time after the March annual cutoff date.
- Nov. 1: Deadline for filing life insurance reports and remitting property.
If the due date falls on a weekend or holiday, the due date will be the following business day.
Unclaimed property should not be reported until it has reached the end of the abandonment period.