Audit Defense

States are increasing enforcement of their unclaimed property laws by increasing the number of audits performed each year. Often, many states team up and use third-party audit firms, such as Kelmar or ACS, to perform these audits. Companies should be particularly concerned when their state of incorporation signs on to these multi-state audits. Without complete records for the entire audit period, the state of incorporation may use various extrapolation methods to estimate what should have been reported as unclaimed property and then claim it under the second priority rule.

Barganier is experienced with the extrapolation methods used by Delaware and other states to estimate unclaimed property amounts. Barganier will work with your company to minimize the effects of these estimates, as well as propose alternative estimations that may be more favorable to the company.

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