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Frequently Asked Questions Regarding Unclaimed Property Reporting

Are negative (zero) reports required by Kansas?

- No. (See KSA 58-3950 paragraph i) However, properties under $100 need to be accumulated if not reported until their total reaches $250, and then they must all be reported. The unclaimed property administrator can supercede the above and require a report at any time. (See KSA 58-3950 paragraph k)

What are my responsibilities to notify owners of their property (due diligence)?

Must send a letter on items of $100 or more 60 to 120 days before a report is filed. (See KSA 58-3950 paragraph e)

Why do I have to submit a statement of compliance from a CPA or a board resolution if I am a financial organization or an insurance company?

To avoid an audit. (See KSA 58-3963 paragraph b)

What kind of deductions can I take from reported property?

Dormancy or inactivity charges may be imposed; however there must be a written contract authorizing the charges and they can only be imposed for 5 years; the owner must be notified before charges begin. (See KSA 58-3935 paragraph h)

Can I be reimbursed for safe deposit rental fees and drilling charges?

Yes. After we sell the property you will be paid what remains after our costs of sale are deducted. (See KSA 58-3953 paragraph g)

What is aggregate?

Aggregate is a total of several items under $100 each. (See KSA 58-3950 paragraph b3)

Do I have to supply owner detail on aggregate items?

No, but we recommend that you do, because if we are contacted by a claimant in regard to one of these amounts years in the future, you will have to research your records and supply us with the detail then anyway.

As a financial institution, if I'm not getting customer statements returned to me by the post office, should I report such accounts as unclaimed property?

No. (See KSA 58-3935 paragraph f)

What is the dormancy period for _____??

Specific dormancy periods are outlined starting at the beginning of KSA 58-3935. The dormancy period for any type of property not specifically mentioned is 5 years. (See KSA 58-3935 paragraph a, sub-paragraph 15)

Are vendor to vendor payments reportable?

Not after July1,1999. (See KSA 58-3935, paragraph g) For a payment to be excluded:
  • The payee must be a business
  • Not all payments from one business to another meet the exception in Kansas. A “commercial transaction” is the buying and selling of goods or services. The phrase “In the ordinary course of the holders business” is borrowed from the uniform commercial code and refers to the usual routine, customs, practices, and transactions of a business. It is measured both subjectively for the business in question and objectively by asking if the transaction is normal for the industry in which the business in engaged. Lastly the transaction must be for the benefit of the buyer or seller and not to satisfy a pre-existing debt or obligation.

    One example of a case that does not meet this last requirement is the payment of a claim by an insurance company either directly to the insured or a third party vendor providing services to the insured. This would not meet the requirement because the payment fulfills the insurance company’s contractual obligation to its insured, and the insurance company is not buying the services for its own use.
  • Transactions dated June 30, 1994 or earlier are still reportable but those dated July 1st, 1994 or later are not.

What other types of property are exempt from the Unclaimed Property law?

See this page; the exemptions are listed there.

Can I get an extension on my report's due date?

Yes; mail or fax your request to us stating why you need the extension and how long you need.

Once I report property for an owner, what about any future amounts that might accrue to them?

Ongoing payments of such things as dividends stock or mineral royalties are automatically reportable once the first payment is eligible. In other words, once the first dividend or royalty payment is reported, you do not have to wait another 5 years to report the next payment. See KSA 58-3935 paragraph 17b

What penalties and fines may be assessed to holders?

See KSA 58-3967.

Can I report and deliver property early(before the prescribed dormancy period has elapsed)?

Yes, with written permission from us. See this form.

What does the law say about the reporting of tax-deferred accounts such as IRA's?

These may be turned in 3 years after:
  • Distribution or attempted distribution
  • Date of required distribution (if specified in the plan)
  • Date distribution must begin to avoid a tax penalty
  • See KSA 58-3935 paragraph a, subparagraph 14 for details.

What if my company has failed to file a report of unclaimed property and is out of compliance?

Please contact our department for information on our voluntary compliance program. Inquiries may be e-mailed to jessica@treasurer.ks.gov or by phone at 785.291.3173.

Do I still have to report if my records are incomplete?

Yes. You should report and remit such amounts as may be reasonably estimated from available records. See KSA 58-3963 paragraph e

How long must I keep records on what I've reported to the state?

10 years except sellers of travelers checks and money orders must maintain records for 3 years after those items are reported.. See KSA 58-3964.

Are gift certificates/gift cards reportable?

No. The language was taken out of our law in 1999. If you are holding gift certificates/gift cards dated before June 30, 1994 please call our office for reporting instructions.

What are ACH/wire transfer instructions?

Contact Jessica Schleif at 785.291.3173 or jessica@treasurer.ks.gov for instructions.