https://claimittexas.org/docs/96-478.pdf

1 Unclaimed Property Reporting Instructions2018 Glenn Hegar Texas Comptroller of Public AccountsiUnclaimed Property Reporting Instructions2018 Glenn Hegar Texas Comptroller of Public AccountsiiUnclaimed Property Reporting InstructionsiiiUnclaimed Property Reporting InstructionsTable of ContentsChapter 1: General InformationUnclaimed Property Defined .. 1 What is a Holder? .. 1 Reporting Method .. 1 Reporting Uncashed Checks and Other Amounts Owed .. 2 Reporting Process at a Glance .. 3 Chapter 2: Holder ResponsibilitiesReporting Overview ..5 Your Responsibilities as a Holder ..5 Chapter 3: Property-Specific ReportingCrime Victims Restitution (HB 1866) ..11 Electric Cooperatives ..12 Escrow Funds Reported by Title Companies.

2 13 Financial Institutions ..14 Guidelines for Inventory Categories ..17 Insurance-Related Property ..21 Local Government ..22 Mineral Proceeds ..22 Mutual Fund Shares, Distributions and Checks .. 24 Securities or Securities-Related Cash .. 26 Chapter 4: Reference TablesProperty Type Codes and Abandonment Periods .. 29 Relationship Codes ..31 Data Entry Standards for Owner Name Fields .. 33 Suggested Abbreviations .. 34 Property Description Field Requirements .. 35 Securities Delivery Codes .. 37 Country Codes .. 38 Summary of Property Types and Dormancy Periods ..41 Financial Institutions ..41 Corporations ..41 Life Insurance ..41 Securities ..41 County Codes To be used for reporting mineral proceeds.

3 42 Helpful Links .. 44ivUnclaimed Property Reporting Instructions1 Unclaimed Property Reporting InstructionsChapter 1 General InformationUnclaimed Property DefinedUnclaimed property can be any financial asset that has been abandoned by the owner for periods ranging from one to 15 years . The abandonment period is the number of years that you hold the property before sending it to the Texas Comptroller of Public Accounts (Comptroller s office) . The property type determines the length of the abandonment period .Title 6 of the Texas Property Code governs the state of Texas Unclaimed Property Program. Chapters 72 through 77 apply to the reporting, delivery and claims processes for abandoned property. Chapter 76 applies only to unclaimed property held and reported by Texas counties, municipalities, independent school districts and junior colleges.

4 Chapter 77 applies only to unclaimed crime victims restitution payments held and reported by county probation is a Holder?A holder is any business in possession of property belonging to an individual or business .Holders may include: Mortgage and title companies Insurance companies Oil and gas companies Securities brokers Utility providers Local government entities Institutions of higher educationAll financial institutions, businesses, governmental entities and organizations holding unclaimed property belonging to Texas residents are required to file an unclaimed property report with the Comptroller s office by July 1 of each year . Organizations that have determined they are not holding abandoned property are not required to file a negative report.

5 A negative report is a placeholder showing that a business did not have property to report for that : county and probation departments will still need to file a negative report for crime victims restitution payments. Source: Texas Property Code, Section Your Contact Information Up-To-DateWe encourage you to keep our office advised of your current address and any changes related to the contact person, department or branch responsible for filing your reports . Your contact information should also include a telephone number and email address . All correspondence should include your Federal Employer Identification Number (FEIN) .Reporting MethodTexas uses the electronic reporting format developed by the National Association of Unclaimed Property Administrators (NAUPA).

6 All files transmitted through the secure file transfer portal must be in this format. Source: Texas Administrative Code, Title 34, Section report can be created using any commercially available reporting software that generates the file in the NAUPA format .Note: Texas uses a modified version of the NAUPA format to allow additional information such as drivers license numbers, email addresses, mineral information required by statute and personal representative information, etc. Most major software providers support Texas specific format for 1 General Information2 Unclaimed Property Reporting InstructionsCommon Types of Unclaimed PropertyProperty type:Abandonment Period (Years)Payroll1 Utility deposits1 Demutualization proceeds1 Uncashed dividend or cashier s checks3 Stocks, bonds, mutual fund accounts3 Stored value cards (gift cards)3 Bank accounts and matured certificates of deposit3 Insurance proceeds3 Mineral interests or royalty payments3 Court deposits, trust funds, escrow accounts3 Money orders3 Safe deposit box contents5 Traveler s checks15 Reporting Uncashed Checks and Other Amounts OwedUncashed ChecksThere is a one-year abandonment period for unclaimed wages.

7 The one-year period applies to all methods of payroll distribution including checks and payroll cards .Source: Texas Property Code, Section all other types of uncashed checks are considered unclaimed property after a period of three years . The abandonment period commences on the date of last contact with the payee or the check issue date . If an actual check was not issued, use the date the amount was first payable to the owner . Reissuing a check does not change the date it should be remitted to the Comptroller s office, as that does not constitute contact with the owner . The abandonment period still begins on the original date the amount was owed to the owner .Source: Texas Property Code, Section and Texas Administrative Code, Title 34, Section CHAPTER 1 General InformationCredit BalancesCredit balances that may or may not have been reduced to check form are also reportable as unclaimed property.

8 The period of abandonment for this property type is three years and commences on the date of last contact with the company or individual . Balances owed to current customers should not be reported . Texas Property Code does not include a provision exempting business-to-business credits .Source: Texas Property Code, Section and DiscountsRebates and discounts that have not been refunded to customers also have a three-year abandonment period . However, if the customer never completes the requirements necessary to receive payment (e .g ., submits their request with a sales receipt by a specific date), the rebate or discount would not be considered unclaimed property .Other Amounts OwedMost types of personal property, which include accounts payable items, have a three-year abandonment period with the exception of traveler s checks, which is 15 years.

9 Uncashed vendor checks are the most common type reported, but balances owed to current vendors should not be reported . You should only report those vendors with which you have had no contact for three years .The other amounts owed category also includes, but is not limited to, uncashed expense checks, customer overpayments, un-refunded overcharges and any other miscellaneous outstanding checks .Property Type Codes and Property DescriptionsWhen you are ready to prepare your report, select the property type code from Chapter 4: Reference Tables, Property Type Codes and Abandonment Periods section that best describes the original property of the owner . Use the miscellaneous outstanding check code (MS16) only as a last resort when the nature of the uncashed check is truly unknown.

10 Refer to the table entitled Property Description Field Requirements for the specific information required in the description field for each property type .3 Unclaimed Property Reporting InstructionsReporting Process at a Glance* Traveler s checks have a 15-year abandonment period .CHAPTER 1 General InformationHow Does the Reporting Process Work?A business is holding funds that are owed to an employee, client, vendor or to locate the ownerAbandonment period requires business to hold property for 1-5 * years depending on property records by March 1 to determine if contact was made with owner after abandonment period. By May 1 due diligence notices are mailed, alerting owner their unclaimed property will be still not established with owner after due owner is not found after due diligence, property must be included in the July 1 online report to the are required to keep information relating to reported unclaimed property for 10 Property Reporting Instructions5 Unclaimed Property Reporting Instructions Chapter 2 Holder ResponsibilitiesBusinesses are required to file an annual unclaimed property report following the steps and adhering to the due dates outlined in this chapter.