This week, California announced the requirements that unclaimed property holders need to satisfy to be considered for the state’s recently-enacted Voluntary Compliance Program.
On September 13, 2022, Governor Newsom signed California Assembly Bill 2280 into law, allowing for an unclaimed property California Voluntary Compliance Program (“CVCP”).
Under the law, the Controller waives interest for past due properties reported by unclaimed property holders that voluntarily enroll, are accepted, and successfully complete the CVCP.
The CVCP is particularly appealing in light of California’s 12% interest rate and renewed focus on unclaimed property enforcement. The law also comes on the heels of AB 466, which requires companies to disclose details of their unclaimed property compliance history on California franchise tax returns.
Holders that are interested in participating in the program must notify the California State Controller’s Office (the “SCO”) of their interest via a form on the SCO’s website. The SCO will send interested holders an application form to complete.
When completing the application, holders must provide information on the staff members who will attend training and submit reports, and the estimated value of inactive properties and accounts in their records.
After reviewing applications and approving enrollment, the SCO will provide due dates for required deliverables that coincide with the standard unclaimed property reporting cycle.