Contents
The Illinois Unclaimed Property Reporting form, known as UPD601, serves as a crucial tool for businesses and organizations to comply with state regulations regarding unclaimed property. This form must be filled out completely to avoid penalties and fees, emphasizing the importance of accuracy in reporting. It requires holders to identify the type of report they are filing—whether it's a first-time submission, a supplemental report, or the annual report. Essential details such as the merging company’s name, Federal Employer Identification Number (FEIN), and contact information for a designated representative must be included. Additionally, the form prompts organizations to conduct a thorough search of their records for unclaimed property, which is typically defined as property abandoned for five years or more. Due diligence is mandated, necessitating that holders send letters to property owners before filing. The UPD601 also outlines payment options, such as checks or electronic payments, and mandates verification of the report's contents under penalties of perjury. To facilitate the reporting process, organizations can utilize a supplementary form, UPD602, to detail individual owner records. By understanding and adhering to the requirements of the Illinois Unclaimed Property Reporting form, businesses can ensure compliance while contributing to the proper management of unclaimed assets within the state.
Things to Know About This Form
What is the Illinois Unclaimed Property Reporting form?
The Illinois Unclaimed Property Reporting form, known as UPD601, is a document that businesses and organizations must complete to report any unclaimed property they hold. This includes funds or assets that have been abandoned for a specific period, typically five years. The report must be submitted to the Office of the Illinois State Treasurer to comply with state law.
Who is required to file this report?
Any business or organization that holds unclaimed property must file this report. This includes financial institutions, insurance companies, retailers, and government agencies. Each year, these holders must review their records to determine if they possess any unclaimed property and submit the necessary report to the Treasurer’s Office.
What types of property need to be reported?
Businesses must report property that has been abandoned for a certain period. For most holders, this period is five years, while governmental entities have a seven-year requirement. Common types of reportable property include uncashed checks, dormant bank accounts, and unclaimed insurance benefits. Specific rules apply to different types of organizations, so it’s essential to check the guidelines for your sector.
What happens if the report is incomplete?
If the UPD601 form is not completed in its entirety, it may be deemed incomplete. This could lead to fees and penalties for the reporting organization. To avoid this, ensure all required information is provided, including the contact details, payment information, and verification signature.
How should the report be submitted?
What should I do if there is no unclaimed property to report?
If your organization does not hold any unclaimed property, you must still file a report. In this case, mark “NTR” (Nothing to Report) in the payment information section of the UPD601 form. This ensures compliance with state requirements even when there are no funds to report.
Key takeaways
Understand the Requirement: Businesses and organizations in Illinois must review their records annually to identify any unclaimed property. This requirement is mandated by the State of Illinois Uniform Disposition of Unclaimed Property Act.
Identify the Property: Common holders of reportable property include financial institutions, insurance companies, and government agencies. Property that has been abandoned for five years or more must be reported.
Due Diligence is Essential: Before filing the report, it is crucial to send due diligence letters to property owners 60 to 120 days in advance. This is a legal requirement for items valued over $10.
Choose Your Reporting Method: Organizations reporting more than ten records must use electronic reporting software. For smaller reports, paper forms can be completed and submitted.
Complete the Forms Accurately: Ensure all required fields on the UPD601 form are filled out correctly, including contact information and details about the unclaimed property.
Timely Submission: The report must be submitted along with any remittance by the deadline. Late submissions can result in penalties.
Keep Records: It is important to maintain copies of all submitted forms for your records. This can help in case of any future inquiries or audits.
Common mistakes
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Incomplete Information: One of the most common mistakes is failing to fill out all required sections of the form. Each part, from the mailing address to the verification signature, is crucial. Missing even a small detail can lead to delays or penalties.
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Incorrect Report Type: Selecting the wrong type of report can cause confusion. Ensure you choose between options like "First Time Filing," "Supplemental," or "Annual Report." Each type has specific implications for your submission.
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Failure to Perform Due Diligence: Many people overlook the requirement to issue due diligence letters to property owners before filing. This step is essential, especially for items over $10.00. Skipping this can result in compliance issues.
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Improper Payment Method: It's vital to correctly indicate how you are remitting payment. Whether by check or ACH, ensure that the payment information is accurate. Incomplete payment details can lead to your report being returned.
How to Fill Out Illinois Unclaimed Property Reporting
Completing the Illinois Unclaimed Property Reporting form is a crucial step for organizations holding unclaimed property. By following the outlined steps, you can ensure that your report is accurate and complete, thereby avoiding potential fees or penalties. After submitting your report, the Illinois State Treasurer's Office will review the information provided and take necessary actions based on your report.
- Gather your organization's basic information, including the name and mailing address.
- Identify the type of report you are filing: First Time Filing, Supplemental, Annual Report, or Other.
- Fill in required information such as contact person, phone number, fax number, email address, FEIN, state and date of incorporation, type of business, total assets, annual sales, and number of employees.
- Conduct due diligence by sending letters to property owners 60 to 120 days before filing, especially for accounts over $10.00.
- Select a method of reporting: either electronically using NAUPA software for more than 10 records or by completing paper forms.
- Complete the report by aggregating items under $25.00 and listing security-related property individually.
- Choose a payment method and provide the total amount of cash, number of owners, and shares on the report.
- Sign the verification section, ensuring the report is signed by an authorized employee.
- Submit the report and remittance according to the delivery instructions provided.
- If you have questions, reach out to the Illinois State Treasurer's Office at (217) 524-0023 during business hours.
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