As more and more businesses are facing financial challenges in the wake of the ongoing pandemic, it`s important to remember that unclaimed property compliance is an essential component of financial stability. In New York, the state comptroller has introduced a voluntary compliance agreement (VCA) program to help businesses come into compliance with unclaimed property regulations.

What is Unclaimed Property?

Unclaimed property refers to any financial asset that has been abandoned or forgotten about by the owner, such as bank accounts, uncashed checks, unclaimed insurance policy proceeds, stocks, and more. Each state has its own laws and regulations regarding unclaimed property, and it`s the responsibility of businesses to comply with these regulations.

New York`s Unclaimed Property Law

New York State`s unclaimed property law requires businesses to report and remit any unclaimed property to the state. Failure to do so can result in penalties and fines. The state comptroller`s office has been working to enforce compliance with the law and recover unclaimed property. In 2020 alone, the office returned over $450 million in unclaimed funds to rightful owners.

Voluntary Compliance Agreement (VCA) Program

To help businesses come into compliance with the law, the New York State Comptroller`s Office has introduced a Voluntary Compliance Agreement (VCA) program. This program allows businesses who have not previously reported unclaimed property to come forward and voluntarily comply with the law. Businesses that participate in the VCA program can avoid penalties and fines and may be eligible for reduced interest rates on past-due unclaimed property.

How to Participate in the VCA Program

To participate in the VCA program, businesses must first contact the New York State Comptroller`s Office and express interest in the program. The office will then provide detailed instructions on how to proceed. The VCA program typically involves a review of the business`s records and accounts to identify any unclaimed property that should have been reported and remitted to the state. The business must then report and remit this property to the state.

Benefits of Participating in the VCA Program

Participating in the VCA program has several benefits for businesses. First and foremost, it allows businesses to avoid penalties and fines for noncompliance with the law. Additionally, businesses that participate in the program may be eligible for reduced interest rates on past-due unclaimed property. Finally, participating in the VCA program helps businesses become compliant with the law and ensures that they are operating in a financially stable manner.

Conclusion

In summary, the New York State Comptroller`s Voluntary Compliance Agreement (VCA) program is an important opportunity for businesses to come into compliance with unclaimed property regulations. By participating in the program, businesses can avoid penalties and fines, become compliant with the law, and ensure that they are financially stable. Businesses that are unsure of their compliance status should contact the New York State Comptroller`s Office to learn more about the VCA program and how to participate.