An Introduction to Abandoned and Unclaimed Property

It is estimated that there are billions of dollars in uclaimed or abandoned properties held by private and public entities in the United States today. These entities or "holders" are required by law to turn this property over to the appropriate State Unclaimed Property Office after is has been held for a fixed period of time. Unfortunately, much of this unclaimed and abandoned property is ever properly remitted to the custody of the States or refunded to the rightful owner. The reasons for this vary, ranging from a willful failure to comply with the law to unintentionally "writing off" the funds to income through complex accounting procedures.

In their custodial capacity, the States are charged with making diligent efforts to return this property to the rightful owner. Pending claim by the owner or heirs the Unclaimed Property is held in custody, invested, and is utilized to benefit all of the citizens of the State. In many cases, portions of the funds or the interest earnings go into the States general fund to reduce taxes or make public improvements. Other States utilize the money for literary purposes, public parks, loans for students in schools of higher education, or various trust funds.

The focus of the abandoned property industry is changing. There has been a shift in the past few years for service companies, consultants and large accounting firms to represent the "holder" community in an effort to thwart the States attempts to audit for unclaimed property. In addition, holders are using interest groups to propose legislation to limit or exclude certain types of unclaimed property. These efforts not only deny the owner of his or her right to recover their property, but restricts the oppertunity of the states to utilize this money to the benefit of all its citizens.

Audit Services U.S., LLC is founded on over 100 years of combined auditing and administrative experience in the field of unclaimed property. We have the knowledge and dedication to assist your state in indentifying and recovering abandoned property. Most importanlty, our commitment is to the States and will remain there.