FREQUENTLY ASKED QUESTIONS < back to the FAQS main page Q.5 Why should a business be concerned about Unclaimed Property? A.5 All 50 states, the District of Columbia, the Virgin Islands and Guam have statutes that require all legal entities, including partnerships, LLC’s and C corporations, to file an annual unclaimed property report. Due to the fact states are increasing their enforcement of unclaimed property, any company should be aware of the compliances, penalties and interest associated within unclaimed property. Auditors are aggressively profiling certain industries and issuing assessments that may actually be higher than a company's legitimate liability due to a lack of records, or errors in, record-keeping maintained by these audit targets. While potential liability may not be significant or material in any single year, a lookback of 22 years could result in a potential liability which would be material for financial statement purposes. Publicly held corporations have financial statement reporting requirements to disclose all contingent liabilities. Chief Financial Officers also have a responsibility to authorize quarterly certification statements attesting to the fact that the company is in compliance and all liabilities have been disclosed or accounted for. Barganier & Associates can help you manage any of these concerns efficiently and effectively with quality, knowledge and experience.