Michigan Unclaimed Property Voluntary Disclosure Agreement: How to Make Things Right with the State

If you’re a business owner in Michigan, you may have some unclaimed property sitting around in your possession. Unclaimed property is defined as any financial asset that has been abandoned by the rightful owner for a certain period of time. This can include things like uncashed checks, forgotten bank accounts, and abandoned safety deposit boxes.

As a business owner, you have a responsibility to ensure that any unclaimed property in your possession is properly handled and reported to the state. Failure to do so can result in penalties and legal action. Fortunately, the state of Michigan offers a Voluntary Disclosure Agreement (VDA) program that can help you get into compliance and avoid any negative consequences.

What is the Michigan Unclaimed Property Voluntary Disclosure Agreement?

The Michigan Unclaimed Property Voluntary Disclosure Agreement is a program that allows businesses to voluntarily come forward and report any unclaimed property they may have in their possession. By doing so, they can avoid penalties and interest charges that may have otherwise been assessed if the property was later discovered by the state.

Under the program, businesses must agree to perform a thorough review of their financial records to identify any unclaimed property. They must then report the property to the Michigan Department of Treasury and remit any funds owed to the rightful owners. In exchange, the state agrees to waive penalties and interest on the reported property.

Who is eligible for the program?

The Michigan Unclaimed Property Voluntary Disclosure Agreement program is open to any business that has never been contacted by the state regarding unclaimed property, has not previously filed unclaimed property reports, and is not currently under audit or investigation by the state.

Businesses that are eligible for the program include corporations, partnerships, limited liability companies, sole proprietorships, and other business entities that may have unclaimed property in their possession.

What are the benefits of participating in the program?

There are several benefits to participating in the Michigan Unclaimed Property Voluntary Disclosure Agreement program. First and foremost, businesses can avoid penalties and interest charges that may have otherwise been assessed for failing to report unclaimed property. This can result in significant cost savings for the business.

Additionally, participating in the program can help businesses maintain a positive relationship with the state and demonstrate their commitment to compliance with state regulations. This can be particularly important for businesses that may be subject to future audits or investigations.

How do businesses participate in the program?

To participate in the Michigan Unclaimed Property Voluntary Disclosure Agreement program, businesses must submit a written request to the Michigan Department of Treasury. The request should include the following information:

– Name and address of the business

– Description of the unclaimed property being reported

– Estimated value of the unclaimed property

– Explanation of why the property was not previously reported

– Proposed plan for remitting the funds to the rightful owners

Once the request is received, the Michigan Department of Treasury will review the information and determine whether the business is eligible for the program. If the business is approved, they will be required to perform a thorough review of their financial records and report any unclaimed property to the state.

In conclusion, the Michigan Unclaimed Property Voluntary Disclosure Agreement program is a valuable resource for businesses that may have unclaimed property in their possession. By participating in the program, businesses can avoid penalties and interest charges, maintain a positive relationship with the state, and demonstrate their commitment to compliance with state regulations. If you believe your business may have unclaimed property, consider reaching out to the Michigan Department of Treasury to discuss your options.