|
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 is considered unclaimed property. For example, uncashed payroll checks must be turned over to the State after one year; most other property types, such as vendor checks and accounts receivables credit balances, must be turned over after three years. Government entities must turn over all unclaimed property, regardless of property type, after one year.
Michigan's Uniform Unclaimed Property Act, Public Act 29 of 1995, as amended, requires businesses and government entities 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 addition, every business or government entity that is incorporated in Michigan must report and remit abandoned property belonging to owners where there is no known address.
For a complete list of property dormancy periods, see the
dormancy chart
.
Due Date
The due date for filing the unclaimed property annual report is July 1, 2012 for property reaching its dormancy period as of March 31, 2012.
How to Report
Complete instructions and forms are available in the
Manual for Reporting Unclaimed Property.
The amount of properties that a holder reports determines the method for reporting.
How to Pay Electronically
Holders who have previously filed unclaimed property reports with the State of Michigan now have the ability to
remit payment
for their unclaimed property report. Since this payment method requires validation, this payment method is not available to first time filers.
Voluntary Disclosure Agreement
Treasury is providing entities that have not previously reported or have underreported
unclaimed property in the past with an opportunity to voluntarily comply with
the requirements of the Michigan Unclaimed Property Act (Act) by offering a
Voluntary Disclosure Agreement.
Entities that submit a Voluntary Disclosure Agreement indicate their desire
to be compliant with the Act. Accordingly, the holder agrees to voluntarily
comply with the Act by reporting and remitting previously unreported unclaimed
property due the State of Michigan. In accordance with the Voluntary
Disclosure Agreement, the holder agrees to accurately complete and file unclaimed
property reports and remit payments for the current reporting year and the
previous 4 reporting years within 6 months from the date the form is filed
with the Unclaimed Property Division. Holders will not be assessed penalties;
however, interest will be charged for voluntarily remitted past due property
in accordance with the Act.
Resources
Possible Penalty and Interest Charges
If a property holder fails to properly file a report, penalty and interest may be assessed as follows:
-
Interest at one percentage point above the adjusted prime rate per annum per month on the property or value of the property from the date the property should have been paid or delivered, and/or
- Penalty at 25 percent of the value of the property that should have been paid or delivered.
How to Contact Us
Unclaimed Property Division
Michigan Department of Treasury
P.O. Box 30756
Lansing, MI 48909
|
