Holder Frequently Asked Questions Who is a holder? Any business entity in possession of property is a potential holder. This includes, but is not limited to: Banks, insurance companies, utilities, corporations, partnerships, LLCs, sole-proprietorships, government agencies and not-for-profit organizations; Estates and trusts; Fraternal or cooperative associations. As a holder, what are my reporting obligations under North Carolina Unclaimed Property Laws? North Carolina's Unclaimed Property Law requires all companies and institutions operating in the State to examine their books and other accounting records - at the close of each fiscal year (June 30) for non-life insurance companies and calendar year (December 31) for life insurance companies - to determine whether they are in possession of dormant unclaimed property (property which has met its holding period). If so, the holder must first perform "due diligence." Due diligence is a process that involves an attempt to locate rightful owners prior to escheatment. If the holder is unsuccessful in locating the owners, the holder is required to remit the property, along with a report, to the NC Department of State Treasurer. For instructions on how to report unclaimed property, please visit Holder Information and Reporting. What is a dormancy period? A dormancy period is a period of time in which the owner of the property has not shown an interest in the property. An indication of interest may include such things as the cashing of a check, a deposit or withdrawal, payment of a premium, etc. A dormancy period can vary from 1 to 15 years depending on the property type. Some examples include: Utility deposits and refunds, wages and government obligations have a one-year dormancy period. Securities, retail related properties, tax-deferred compensation and retirement account properties have a three-year dormancy period. Accounts payable and most other general obligations have a five-year dormancy period. Dormancy periods are discussed in North Carolina General Statute 116B-53(c), and are available in the Reporting Library. As a holder, what are my obligations to notify owners of their property (due diligence)? For property that is a security, or other equity interest in a business association having a property value of $25 or more, and all other property types having a property value of $50 or more, the law requires a holder to send a written notice to the apparent owner.The holder shall exercise reasonable care to ascertain that it is sending the written notice to the apparent owner's correct address. North Carolina General Statute 116B-59(b) requires that notices be mailed not more than 120 or less than 60 days from the reporting due date. Holders who fail to perform due diligence or who fail to report and remit unclaimed property may be subject to penalties and interest as outlined in North Carolina General Statute §116B-77. How do I report unclaimed property? All reports must be submitted via website at www.NCCash.com. Look for the blue Holder Reporting box. Manual Online Reporting Instructions provide specific instructions to assist you in creating and submitting a report on our website. If you have created a report using holder reporting software, you may upload it directly to our website. The Holder Information and Reporting section of our website provides the resources needed to understand filing requirements and provides instructions on how to file. In addition, contact the Unclaimed Property Division at email@example.com for assistance with Holder Reporting. When is a property considered unclaimed or abandoned and subject to North Carolina's Unclaimed Property Laws? Property is considered unclaimed or abandoned when: The property is held, issued, or owing by a holder; and The identity, status or present location of the apparent owner is unknown, and; The required dormancy period for the property type(s) has been reached. If my business is located in North Carolina, are all my dormant unclaimed properties reportable to North Carolina? Unclaimed property is reportable to North Carolina if it is established that: The last known address of the apparent owner is a North Carolina address; The identity and/or last known address of the apparent owner is unknown, and the holder is domiciled in North Carolina; or The last known address of the apparent owner is in a foreign country, and the holder is domiciled in North Carolina. Do North Carolina holders have to report unclaimed property to other states? They may. Any unclaimed property which has met its dormancy period and is not subject to North Carolina's jurisdiction may be reportable to other states. Contact the compliance staff of the state to which the property is likely reportable (state of last known address of the owner) for further guidance and information concerning that state's unclaimed property laws. NOTE: All property due to California MUST be reported to California. Are all dollar amounts subject to reporting in North Carolina? Yes, all amounts are reportable. However, in some cases, holders may report similar properties valued at less than $50 in an Aggregate amount, along with owner information, as opposed to separately listing all individual owner amounts. In addition, if a holder's intangible property totals $250 or less, a holder may wait and report in the year in which their cumulative unclaimed property total exceeds $250. What are the filing deadlines in North Carolina? All holders, except life insurance companies, must file their unclaimed property reports by November 1 of each year for the prior fiscal year (July 1 – June 30). Life insurance companies must file by May 1 each year for the prior calendar year. Report conversion tables are available at Step 1. What happens if a holder fails to report its unclaimed property? A holder who fails to report, pay or deliver property within the time prescribed by law, or fails to perform duties required by law, such as due diligence, will be subject to all penalties under North Carolina General Statute 116B-77. This includes a daily interest penalty, a $1,000 civil penalty each day the report is held, plus 25 percent of the value of any property that should be reported. If I have no dormant unclaimed property on my books, am I required to file a "Negative Report?" No, holders are not required to file a Negative Report if they have no unclaimed property to report. However, holders must be mindful that the absence of a filed report (negative or positive) leaves a "hole" in their filing history. If during subsequent reviews, unclaimed property is found to have been reportable during that period, the five-year statute of limitations provisions would not apply to that period. How do I file a "Negative Report?" Access the blue Holder Reporting box at www.NCCash.com and select "Upload a Report." Enter holder information, report type, report year and select "Yes" in the Negative Report button. Can I file and report unclaimed property early – before it has reached its dormancy period? With written consent of the NC State Treasurer (or the State Treasurer's designee), a holder may report and remit property before it is presumed abandoned for things such as business closures. All such requests must be submitted in writing. What do I do if an owner requests payment of funds which have already been reported to the NC Department of State Treasurer as unclaimed? Holders can instruct the owner to contact the State Treasurer to reclaim their funds. Or, if the holder chooses to pay the owner, once done so, the holder can file for a refund with the State Treasurer using the Holder Reimbursement Request, provided the funds are still being held by the State Treasurer at the time of their refund request. How do I report property containing securities? Please refer to the guide: Report, Register and Transfer Instructions for Securities. This guide provides instructions on reporting and transferring properties containing securities. How do I report tangible property? Please refer to the guide Tangible Reporting Instructions. This guide provides instructions on reporting and delivering tangible property. Can third parties file on behalf of their clients? Pursuant to N.C.G.S. §116B-60, Holders are the only entities authorized to file reports. A holder is defined as follows by N.C.G.S. §116B-52 (5): "Holder" means a person obligated to hold for the account of or deliver or pay to the owner property that is subject to this Chapter. Third parties may prepare, but not file, a report. Does North Carolina allow aggregate reporting? In some cases, amounts under $50 may be "lumped together" and reported as an 'Aggregate' amount without listing the individual owner's name and address. Properties pertaining to intangible earnings and capital gains (i.e., dividends) from securities and mutual funds can not be aggregated and must be listed by owner name, regardless of the amount of unclaimed property being reported. Please keep in mind, aggregate reporting may result in additional information being required by the holder when a claim is placed on the funds; therefore, it is preferred that all properties be reported in the owner's name. If properties are reported in the aggregate, we request that you provide a detailed listing of aggregate amounts for our files to assist in refunds. Aggregate amounts should be summed by property code groups and listed in the "last" name field as 'Aggregate.' Multiple property types may be reported in aggregate, if applicable. Can I request a filing extension? Holders unable to submit their reports by the filing due date may request a filing extension by submitting a Holder Extension Request form. Such requests are approved only for good cause. NOTE: In the event the NC State Treasurer issues a blanket extension of the filing deadline, holders are not required to submit individual extension requests unless they are unable to meet the new deadline. What forms of payment are acceptable? Holders may submit payment via check, ACH (automated clearing house), or wire transmittal. All remittances by check should be made payable to the North Carolina Department of State Treasurer. See Step 4 Remit Funds Due for detailed instructions. After filing a report, how long must I retain supporting work papers, owner notices, or other related accounting records and documentation? The Regulatory Reform Act of 2012 (Senate Bill 810) was signed into law on July 16, 2012. This bill shortens the record retention period from 10 to five years. Therefore, for reports filed after July 16, 2012, the holder must retain the supporting documentation for five years after filing the report. The supporting documentation should date back to the beginning of the dormancy period for each property type, and at a minimum for five years in accordance with the five year catch-all dormancy period. Can I deduct amounts from property presumed abandoned? A holder may deduct from property presumed abandoned a reasonable charge for an owner's failure to claim property within a specified time period ONLY IF there is a valid and enforceable written contract providing for such charge between the two parties, and it is regularly imposed and not regularly reversed or cancelled. A holder may also deduct from property presumed abandoned other lawful charges specifically authorized by statute or by a valid and enforceable contract. Applicable deduction codes may be found in the Electronic File Format Requirements document located on the website. Does North Carolina accept Bitcoin or other Cryptocurrencies? At this time, North Carolina is not accepting cryptocurrency. Any changes to North Carolina's acceptance policy for cryptocurrency will be placed on the website. Please check the website for updates. What do I do with my Bitcoin/Cryptocurrency until North Carolina starts accepting it? What if there are losses or gains in the Bitcoin/Cryptocurrency while I'm holding it and waiting for North Carolina to accept it? North Carolina cannot provide you with advice on what to do with cryptocurrency currently in your possession. However, any changes and related instructions in North Carolina's acceptance and advice will be placed on the website. How do I notify the Unclaimed Property Division of a reporting error? If incorrect information was submitted on a report, a new report should be submitted by accessing the blue Holder Reporting box at www.NCCash.com and selecting the report type "Replacement Report." After uploading the replacement report, send an email to firstname.lastname@example.org with the subject UNCLAIMED PROPERTY REPORTING ERROR. The email should provide the following information: the date the original report was submitted and the amount reported on the original report; the date the replacement report was submitted and the amount reported on the replacement report; the reason a replacement report was required by holder; and the date and amount of funds remitted. I submitted my report and have identified that additional (supplemental) owner information needs to be reported to North Carolina. How do I do that? If you have submitted a report that contains correct reporting information, and have since identified additional owner information, complete a supplemental report. Complete a report that contains just those properties for which additional information needs to be reported. If uploading a NAUPA file in the blue holder reporting box, select "supplemental" report type when uploading. If entering a manual report in the blue holder reporting box, when finished entering the manual online report: Email email@example.com entering "Supplemental Report" in the subject line. Attach a Report Summary to the email. The body of the email should provide: the date and amount of initial report, the date and amount of the supplemental report, and the date and amount of fund remittance. What if I have past due property to report? Depending on the age and amount of past due property, as well as other conditions, some holders may be eligible to participate in North Carolina's Voluntary Disclosure Program (VDP). The VDP encourages holders to voluntarily become compliant by reporting and remitting past due property without paying interest and penalties. Please visit VDP or VDP FAQs for more information. How do I determine the interest rate and calculate interest penalty for property which is past due? If your report is not being filed within the time prescribed by Chapter 116B, and you have not received a waiver of interest, your payment must include interest on the property or value of the property from the date the property should have been reported, paid, or delivered. The NC State Treasurer uses the interest rate established by the Secretary of Revenue. Click here to determine the applicable interest rate. Calculation: Total amount of property reportable X # of days late/365 X interest rate = interest penalty. How do I remit late interest if paying by check? If your payment includes interest, and the corresponding payment is a check, follow the instructions below. Mail the Report Summary, with your check, and include a letter that indicates the portion of the remittance due to the report and the portion of remittance that is paid as interest to: NC Department of State Treasurer Unclaimed Property Division 3200 Atlantic Avenue Raleigh, NC 27604-1668 How do I remit late interest if paying by ACH or Wire? If your payment includes interest, and the corresponding payment is made via ACH or Wire, follow the instructions below. Email the Report Summary, confirmation of payment, and letter that indicates the portion of the remittance due to the report and the portion of the remittance that is paid as interest to: firstname.lastname@example.org. Who do I contact if I have more questions? Direct all additional reporting and filing inquiries to email@example.com or by calling 919- 814-4200 and selecting Option 3.