May 2026: Is Unclaimed Property Putting Your AP Team at Risk?

Whether uncashed vendor checks, credit balances, or overpayments, unclaimed property can be complicated for accounts payable teams to navigate — and the consequences of getting it wrong can be costly. Considering the long look-back periods of 13-15 years on average for review and extrapolation potential, organizations must pay close attention to the risk of noncompliance.

According to a recent article in Newsweek, more than $70 billion in unclaimed property including cash, checks, deposits and dividends is currently being held by states nationwide. Laws governing what type of property is escheatable, how long it must be abandoned before it is reportable, and how the property is remitted to the state vary considerably.  

Multi-state audits are becoming increasingly common, as states frequently partner with contract auditors who represent 10 to 30 states at once. These audits typically last three to five years and require hundreds of hours of staff time. Resulting penalties and professional fees can far exceed the property's value.

This Month's Quick Take

• Know your state laws and check them regularly. State treasurer or comptroller websites, and the National Association of Unclaimed Property Administrators (NAUPA), are good resources for guidance on unclaimed property. Check sources regularly since laws change frequently. 
• Credit balances and overpayments are not income. Many organizations routinely take credit balances and overpayments into income. This is not a sound policy since these types of funds are property of the payee. If the payee does not request the funds or is not reachable, the funds are thus escheatable after the specified period of time. 
• Three dates control your compliance window. The dormancy cutoff is when property officially becomes abandoned. The due diligence deadline is your window to contact the owner. The reporting deadline is when the property and completed report must be submitted to the state. Miss the due diligence deadline and you may lose your legal protection, even if you file on time.
• While there are various ways to resolve unclaimed property issues, any early intervention is better than waiting for a trail to go cold.

Editorial Webinar: Unclaimed Property: 2026 Regulatory & Compliance Updates

This session will summarize the current compliance and regulatory environment, highlight ongoing changes and efforts geared toward increasing state compliance, and highlight opportunities to reduce potential reporting exposure, while also possibly reversing the flow of funds back to businesses. 

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Unclaimed Property Strategies: More Than Simple Due Diligence

Unclaimed property laws apply to nearly every organization. Expert Jim Sadik joins IOFM to cover due diligence requirements, escheatment risks, and why waiting too long can hurt your audit standing.

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Can Unclaimed Property Payments Be Reissued via EFT Instead of Check?

Can you pay unclaimed property via EFT instead of reissuing a check? Jim Sadik weighs in on state restrictions and what to watch out for before making the switch.

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