Unclaimed Property Reporting - State of Michigan

The State of Michigan law pertaining to business and government reporting of unclaimed property has changed significantly. The revised law requires reporting and remittance of unclaimed property after it remains unclaimed for a specified period of time (its dormancy period). For example, uncashed payroll checks must be turned over to the State of Michigan after one year. Most other property must be turned over to the State after three years. Government entities are required to turn over unclaimed property after one year.

Businesses and government entities that fail to report and submit unclaimed property by the appropriate due date are subject to both interest charges (at 1% over prime) and penalties (25%) based on the value of the unreported property.

• Beginning in 2011, unclaimed property is identified as of March 31, 2011. Prior reporting was as of June 30.
• Property that has reached its applicable dormancy period (generally one year or three years) as of March 31, 2011, must be remitted with and reported on Michigan State Form 2011, Michigan Holder Transmittal for Annual Report of Unclaimed Property and the appropriate Annual Reporting Form (there are separate forms for cash and safe deposit boxes, and for securities). If the Holder (business or government entity) has more than ten items to report, then they must use electronic media (generally CD-ROM) for the Annual Report.
• The due date for this filing is July 1, 2011.
• Free software is available on the State of Michigan website.

Businesses and government entities that have no unclaimed property to report are now required to submit Michigan Form 4305, Attestation of Compliance with Unclaimed Property Reporting no later than July 1, 2011.

The State of Michigan is also allowing those entities who previously failed to report and remit unclaimed property to voluntarily submit unclaimed property reports for the previous four reporting years (2007 – 2010). Although penalties will not be assessed on such property, interest will be charged.

The Michigan Department of Treasury is warning entities that failure to comply with the reporting requirements outlined above could result in selection for audit, which will cover the last ten reporting years. 

For more information regarding the law, filing requirements, related penalties and a Manual for Reporting Unclaimed Property, go to http://www.michigan.gov/treasury/ and click on Unclaimed Property on the left side.