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Focus on State & Local Taxation: Illinois Law Lowers Requirement for Unclaimed Property Reporting

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Illinois Governor Pat Quinn signed into law HB 1560 (P.A. 097-0270), Uniform Disposition of Unclaimed Property Act. This law shortens the holding period of unclaimed wages and salary to one year.
August 18, 2011

Illinois Governor Pat Quinn signed into law HB 1560 (P.A. 097-0270), Uniform Disposition of Unclaimed Property Act. This law shortens the holding period of unclaimed wages and salary to one year.

The prior holding period was five years for wages—and generally remains for all other types of unclaimed property in Illinois. The new law took effect on August 8, 2011.

The one-year holding period is the shortest in the United States. After one year of being outstanding, the amount of the unclaimed wage must now be reported and remitted to Illinois as unclaimed property.

The full text of HB 1560 can be found by clicking here.

With the sluggish economy continuing, unclaimed property compliance audits are becoming more common place for businesses.

The most audited type of “unclaimed property” is wages (as opposed to gift cards, stock certificates, safe deposit boxes, etc.)

The holding period for unclaimed property should not be confused with the annual reporting requirements of state escheat laws.

Please contact one of the following RubinBrown partners for more information on state unclaimed property compliance requirements and our unclaimed property consulting and compliance services.

 

Under U.S. Treasury Department guidelines, we hereby inform you that any tax advice contained in this communication is not intended or written to be used, and cannot be used by you for the purpose of avoiding penalties that may be imposed on you by the Internal Revenue Service, or for the purpose of promoting, marketing or recommending to another party any transaction or matter addressed within this tax advice. Further, RubinBrown LLP imposes no limitation on any recipient of this tax advice on the disclosure of the tax treatment or tax strategies or tax structuring described herein.

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