Business entities who are not compliant with the Uniform Unclaimed Property Act have the option to participate in the Unclaimed Property Administration’s Voluntary Compliance Program (VCP). The VCP is an alternative to a potentially more arduous and costly full compliance audit. Benefits of the VCP include the removal of all late penalties if the entity successfully completes the program. Simple interest is still assessed on the total liability due to the State. This is applied to the total property due, regardless of when the property was originally due. Below are the steps a business entity, or an authorized representative of the entity, would need to complete to become unclaimed property complaint through the VCP.
STEP 1: Complete and Submit the ‘Request for VCP Admission’ Form
If the business entity decides to use a third party firm to represent them in this matter, a completed Unclaimed Property Power of Attorney Form will also need to be completed by a senior officer of the entity and included with the ‘Request for VCP Admission’ form.
STEP 2: UPA Reviews and Approves Entry to VCP
Once the UPA receives a properly completed ‘Request for VCP Admission’ form it will be reviewed by the Compliance Team. If approved the Compliance Team will send an approval letter, a Voluntary Disclosure Agreement (VDA), and instructions on how the process works. The VDA must be signed by a senior officer of the business entity and returned within 30 days for entry into the VCP. Any alterations to the VDA is prohibited. In certain cases a conference call with all interested parties will be necessary to complete this part of the process.
STEP 3: Business Entity (or Representative) Issues Initial Findings for Review
The business entity has 90 days, from the date on the finalized VDA, to produce the records resulting from the internal audit of accounting records to be reviewed by the UPA. The reach-back period under the UPA’s VDA is 10 report years (the preceding 10 years from the property type’s statutory abandonment period). The methodology for determining the holder’s unclaimed property liability will also be reviewed when the initial findings are submitted. If the entity requires more than 90 days to complete this step, a formal request and approval for an extension of time will be required.
Periodic status updates are required throughout the step. This may be accomplished through email communication or conference calls with all interested parties.
STEP 4: Final Approval of Findings, Report and Remittance of Unclaimed Property
The final step in the VCP is the finalization, approval and reporting of unclaimed property.
The entire VCP must not take more than 180 days, from the date of the finalized VDA to the time unclaimed property is reported and remitted. If more time is required, a formal request and approval for an extension of time will be required.
The VCP is offered with the expectation that on a prospective basis the holder will report and remit all abandoned property owing to New Jersey residents in compliance with the requirements of New Jersey’s Uniform Unclaimed Property Act.
Any questions relating to the VCP can be directed to email@example.com.