Every business entity is required to report unclaimed property assets to the State of Minnesota on an annual basis. The State of Minnesota’s goal is to collect and return unclaimed property to its rightful owners in accordance with Minnesota Statute 345. As an ongoing effort to promote compliance with the Unclaimed Property Law, The Minnesota Department of Commerce has established a Voluntary Disclosure Program.
To participate in this program, the Holder mustNOT:
Be currently under examination or audit by the Department or one of the Department’s contract auditors;
Have agreed to a Department-assisted or Contractor-assisted self-audit;
Have been requested to conduct a Department-assisted or Contracted-assisted self audit; or
Have been contacted by the Department or by one of the Department’s contract auditors to schedule or to conduct an examination or audit of the holder.
General Requirements for the Holder
The Holder must provide the Department of Commerce the following information.
Name of entity, mailing address, contact person, telephone number, facsimilie number, and e-mail address of the contact person, federal identification number, and standard industrial code classification
The Holder’s state of incorporation
The Holder’s principal place of business (city and state)
If the Holder’s state of incorporation and principal place of business is outside of Minnesota, the Holder must provide a list detailing the cities in Minnesota where the Holder conducts business with the number of locations in each city; and
If the Holder has no locations in Minnesota, the Holder must so state.
The Holder must submit a detailed plan outlining the disclosure process to be completed by the Holder which includes, at a minimum, a description of the procedures to be followed during the audit, the property types reviewed or audited, and sampling and/or estimation techniques employed.
If estimations are involved in determining the amount to be reported, the calculations for the estimations must be reviewed and approved by the Department prior to the acceptance of the property by the Department and waiver of penalties. In the event that sampling and/or estimating are required due to inadequate records, the holder must submit an affidavit signed by an officer of the company so stating.
The Holder must accurately identify and report unclaimed property (self-audit) due the Department for the prior ten (10) report years within three (3) months of the Department of Commerce approval of the plan (in identifying and scheduling the property, the property will be aged according to the appropriate dormancy period(s) as set forth by Chapter 345, Minnesota Statutes). The Holder must adhere to reporting periods and Department approved formats.
The Holder must provide any additional information that is requested by the Department during and/or after the completion of the voluntary disclosure and agree to abide by any instruction given by the Department during the course of the voluntary disclosure.
Upon completion of the voluntary disclosure, the Holder must annually file the unclaimed property report required by Minnesota Statute 345.
No property will be accepted on behalf of another state.
If the Holder makes any false or misleading representations to the Department, fees and penalties will be assessed as allowed by law, as well as the commencement of any other actions as permitted by law.
General Requirements for the Department
1. The Holder shall be relieved of liability upon payment and delivery of the unclaimed property as provided in the Act; however, this release of liability shall apply only to the type of property reported and remitted and shall not be construed as a general waiver of all liability for all types of property.
2. The Department of Commerce Unclaimed Property Division shall not impose any penalty or interest against the Holder for the reported property pursuant to the Act.
3. Upon receipt of the report and remittance, the Department may assert its right to conduct an examination of the Holder’s records pursuant to Chapter 345, Minnesota Statutes.
4. All information received from the Holder will kept confidential as provided in Chapter 345 Minnesota Statutes.
Voluntary Disclosure Process
The disclosure agreement contains the terms and conditions of the voluntary disclosure. If the Holder or its agents wishes to participate in the program, the terms and conditions of the disclosure agreement should be reviewed.
If the Holder is in agreement with the terms and conditions of the disclosure agreement, the Holder should complete, execute and return the disclosure agreement along with the Holder Information Worksheet to the Minnesota Department of Commerce, Unclaimed Property Division, Attn: Scott Halvorson, 85 7th Place East, Suite 500, St. Paul, MN 55101-2198.
Along with the signed agreement, the Holder must supply an outline of their disclosure process including past escheatment to the State of Minnesota, a general description of the process which will be undertaken as part of the voluntary disclosure, and a description of processes which will be implemented to ensure future compliance.
Upon receipt of the signed agreement and required information, the Department will review and make a determination on whether the Holder’s participation on the program will be approved.
If approved, the Department of Commerce will sign the agreement. A copy of the executed agreement will be sent to the Holder.
If not approved, a letter will be sent to the Holder explaining the reason(s) for not allowing the Holder to participate in the disclosure program.
Within three (3) months of the date of acceptance, the Holder is obligated to submit a detailed plan to the Department of Commerce Unclaimed Property Division consisting of the following information.
A narrative description summarizing the findings of the Holder.
Estimation calculations, if any (please note: estimation calculations must be approved by the Department of Commerce).
An unclaimed property report (submitted in the required department format) identifying the unclaimed property due to the department, including the funds.
Note: The Voluntary Disclosure Agreement (.pdf) MUST be reviewed and approved by the Minnesota Department of Commerce before the report and remittance are accepted.