Professional Services Accounting ARTICLE -
Abandoned Property Annual Report
Target Audience: Law Firm Professionals, Lawyers, Firm Owners, Owners of Abandoned Property, Law Firm Accountants
The Massachusetts Abandoned Property Law (M.G.L.C. 200A) requires business entities and others to review their records each year to determine whether they are in the possession of any unclaimed funds, securities or other property. Any debt or obligation which has gone unpaid or security that has remained undelivered for three or more years after the date the owner should have received it or was entitled to claim it must be reported and paid to the Commonwealth of Massachusetts Treasury Department. Examples of the property covered includes wages, customer deposits, suspense accounts, escrow funds, commissions, accounts payable, credit balance accounts receivable and any other outstanding check. Reports and property remittance are due no later than November 1 of each year. Reports must include all property that has gone unclaimed for the three years as of the proceeding June 30.
An annual report is required even if no abandoned property is being held. Those who do not comply with the law may be audited and the Commonwealth’s cost of examination will be assessed against the company. Additional, there is a 12% interest charge on all property not reported or delivered as required.
Please contact us should you have any questions regarding these requirements.
Find out how our expertise in professional services accounting can add value to your business. Email us or call us at 1 (888) 875-9770.
related links
Specialized Professional Services
Litigation & Forensic Accounting
Law Firms
Specialized Law Firm Services
Law Firm Newsletter Archive
Tax and Business Updates |
