Unclaimed property reporting in Florida comes with its own set of rules and deadlines that holders must follow. This article will walk you through the key aspects of Florida unclaimed property reporting, highlighting unique requirements, due diligence processes, and the steps to submit your report.
Florida Unclaimed Property Deadlines
For the 2024 reporting year, the deadline to file your unclaimed property report is April 30, 2025. This deadline applies to property that became dormant during the calendar year ending December 31, 2024. Unlike some states that require November filings, Florida has its own schedule. Be aware that late submissions can result in penalties as specified in Chapter 717 of the Florida Statutes.
Unique Features of Florida Escheatment
Florida stands out with its requirement for an Unclaimed Property Identification Number (UPID). This number is essential for each report and can be obtained from the Florida Department of Financial Services. Additionally, all reports, including those with no unclaimed property, must be filed through the Holder Reporting Online System.
Florida Unclaimed Property Dormancy Periods
The dormancy period for most unclaimed property in Florida is five years. After this period, if the owner cannot be found, the property must be reported to the state. The annual report is due by April 30 each year.
Changes to Florida Escheatment Laws (Section 717.1125 F.S.)
Recent changes to Section 717.1125 of the Florida Statutes have affected the dormancy period for properties held by fiduciaries under trust instruments. The dormancy period has been reduced from five years to two years. This means that property held in a fiduciary capacity under a trust instrument is presumed unclaimed if the owner has not interacted with the property within two years after it becomes payable or distributable.
Reporting Florida Unclaimed Property
Types of Florida Unclaimed Property and Due Diligence
Florida mandates the reporting of various types of unclaimed property, such as dormant bank accounts, unclaimed insurance proceeds, stocks, dividends, uncashed checks, deposits, credit balances, and refunds. Due diligence involves making a genuine effort to contact the property owner before declaring the property as unclaimed. For items valued at $50 or more, holders must take significant steps to locate the owner.
Steps to Report Florida Unclaimed Property
- Review the requirements: Consult the Reporting Instruction Manual which details everything we’ve included here, as well as more details.
- Obtain a UPID Number: An Unclaimed Property Identification Number (UPID), is required for each report. Follow the instructions on how to obtain this number here.
- Register for the Holder Reporting Online System: If you plan to file for multiple companies, register only once.
- Prepare the report: Ensure the report is in the required format.
- Submit the report: Use the Holder Reporting Online System to submit your report and remittance, including zero reports.
Florida Zero Balance Reporting
Even if a holder has no unclaimed property to report, they are still required to file a report. This is known as Zero Balance Reporting. All unclaimed property reports, including zero reports, must be submitted through the Holder Reporting Online System.
Reporting Guidelines for Different Property Volumes in Florida
Florida has specific guidelines for reporting fewer than 25 properties and more than 25 properties. Reports with fewer than 25 properties can be submitted manually or electronically, while those with 25 or more properties must be submitted electronically.
Florida Securities and Safe Deposit Box Reporting
Reporting securities and safe deposit box contents in Florida has unique requirements. Securities must be registered to the “Florida Department of Financial Services”. Safe deposit box contents, including documents and writings of private nature, must be reported if they have value.
Paying and Remitting Unclaimed Property Reporting
When preparing your report, you may need the Florida ACH Company ID Number (L272818119) for electronic payments. This ensures that remittances are processed smoothly and securely. Other payment methods include wire transfers and mailing checks. For wire transfers and checks, make sure to include the coupon number provided during the reporting process.
Additional Information on Florida Unclaimed Property
Florida Voluntary Disclosure Program
Florida offers a Voluntary Disclosure Program for holders who may have failed to report unclaimed property in the past. This program allows holders to voluntarily disclose and remit unreported property without facing penalties. It’s a great opportunity to come into compliance and avoid potential fines.
Penalties for Late Reporting in Florida
Late reports, including those from prior years, are subject to penalties as outlined in Chapter 717 of the Florida Statutes. It’s crucial to adhere to the deadlines to avoid these penalties.
Exemptions and Special Cases in Florida Unclaimed Property
Certain types of property and specific situations may be exempt from reporting. For example, credit balances, customer overpayments, security deposits, and refunds with a value of less than $10 are not presumed unclaimed. Additionally, items of value under $50 each may be reported in aggregate.
Florida Holder Education and Resources
Florida offers various resources to assist holders in complying with unclaimed property reporting requirements. These include educational workshops, seminars, and a voluntary disclosure program. The Florida Department of Financial Services also provides free software for electronic reporting.