Michigan Voluntary Disclosure Program

December 11, 2012

On December 1, 2011, Michigan began issuing notices to companies that do business in Michigan but did not file 2011 unclaimed property reports to inform them about the Voluntary Disclosure Program. Under a Voluntary Disclosure Agreement (VDA), the state will waive all penalty and interest assessments for businesses that voluntary report property.

Michigan is allowing companies to begin a compliance program with this waiver if the company submits the required forms by January 31, 2012. In order to qualify, a company may not be under audit by Michigan, either by Michigan itself or through one of its third-party contact audit firms. Michigan has indicated that they do not intend to initiate any audits during this time period. However, they did say that if Delaware begins an audit they will sign on to the new Kelmar audit.

If your company is interested in taking advantage of this Michigan VDA opportunity, please contact Barganier and Associates, LLC, for further guidance on how to enter into the program.

January 11, 2012 Update: The Michigan Bar sent out the attached alert to members (lawyers) of the State Bar of Michigan: Membership Alert Pertaining to Treasury Notice The alert contains a redacted copy of the notice as sent out by the Michigan Department of Treasury.

The Michigan State Bar is concerned about that the notice implies a mandatory duty to report, even in the absence of unclaimed property reporting and no negative report requirement. Furthermore, the Bar is concerned about the ten year look-back period even though no such specific statutory authority exists.