Are there states that reciprocate escheatment information, meaning you can file a negative report with one state and 5 others get the information?


You are correct that there are states that have reciprocal agreements for unclaimed property, whereby holders can file their unclaimed property reports for many states through one agent state. We have an article, About State Reciprocity and Exchange Agreements in Unclaimed Property Reporting which gives background information on reciprocity, as well as a list to tell you which states participate. The reports filing is done in the agent state's format but you must still observe the particular unclaimed property laws, abandonment period and aggregation limits for each state, and you -not the state you file to -are responsible for meeting the requirements of each state to which you have to report. For this reason, the practice of relying on reciprocity agreements between the states is not recommended by leading unclaimed property experts.

Another question is which states have reciprocity agreements with which other states. Because this changes often, we suggest you check with your state of incorporation to see if they are an agent state, and if so, plan to report to it. Of course, it may not have reciprocal agreements with every state to which you must report, yet another problem with reciprocity. Next, you might check the states in which a large percentage of your payees are located to find other agent states, and review the list of states with which they reciprocate, until you have covered all states to which you must report.

However, as noted above, relying on reciprocity among the states is not considered a best practice.

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