Businesses large and small understand the significance and necessity of unclaimed property compliance. Yet despite this recognized importance, many entities fail to navigate the territory with necessary finesse. Wandering aimlessly, they eventually lose their way and leave themselves open to the most feared of intrusions – the unclaimed property audit.
Like it or not, audits are a fact of life in the world of unclaimed property compliance. But as with other serious business matters, owners and managers can minimize audit impact. In fact, in some cases the intrusion can be prevented altogether. One of the most effective preventative agents is the voluntary disclosure agreement (VDA).
As its name implies, a VDA allows asset holders to report any overdue unclaimed property to their respective state government. Many states offer this option to help business entities and organizations achieve unclaimed property compliance – belated though it may be. If the reported information reveals a clean house, an audit becomes unnecessary. The government essentially knows what it needs to know.
Several advantages accrue from achieving unclaimed property compliance and preventing an audit. First, a successful VDA prevents the most notorious byproduct of an audit — late-filing penalties. Secondly, an accepted agreement undoubtedly will save many labor hours. As anyone subjected to an audit can attest, this process requires a major investment of time from owners, management, staff, and all support personnel brought on board.
Bear in mind, a VDA doesn’t guarantee audit immunity. It can, however, greatly minimize the risk of this governmental intervention. And that’s a relief in itself.
Do you have questions about unclaimed property compliance or about any other issues pertaining to unclaimed property? The Argent Firm can help you with a diversity of proven unclaimed property support services and solutions.
Whether you’re an individual intending to recover unclaimed property, a professional requiring escheatment support services, or a business owner who must satisfy compliance regulations and reduce exposure, Argent Unclaimed Property Services can help you reach your objectives.
For more information and answers to all of your unclaimed property questions, contact Argent at toll free 800 930-5993 or firstname.lastname@example.org.
. Our consultants will be happy to assist you any way we can.