Most businesses have unclaimed property resulting from normal operations – any asset, tangible or intangible, belonging to a third party that remains unclaimed for a specified period of time. Businesses and government entities are required to report and remit to the Michigan Department of Treasury abandoned and unclaimed property belonging to owners whose last known address is in Michigan.
In December of 2015, Michigan enacted new legislation, PA 242, to govern the administration of Michigan’s unclaimed property audits. Certain eligible holders can elect to follow a streamlined audit process that provides a reduced lookback period for audits, and a streamline timeframe for completion of the audit as well as other benefits.
Property holders need to evaluate whether to elect the new procedures and must seek to understand the advantages and disadvantages.
Contributed By June Summers Haas, Honigman Miller Schwartz and Cohn LLP.
View the on-demand webinar “Unclaimed Property Reporting Update” with June Summers Haas and Lynn Gandhi.