Who typically handles the escheat state filings in most companies? The tax dept. or the disbursements (A/P) Dept.?


A best practice company will usually have AP and the tax department handle this by breaking up the tasks:

  • Accounting notifies AP of uncashed checks.
  • AP researches the validity of the payment to make sure it is not a duplicate, then begins trying to contact the payee via phone calls and certified letters to see why it was not cashed.
  • If unsuccessful, the tax department files the escheat and requests payment from AP.
  • AP issues the payment to the state.
  • AP journals to an escheat account by state with the data needed for filing (in the appropriate year).
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