About a year ago several of my clients received a letter from the State of Michigan informing them of Michigan’s Unclaimed Property Filing Requirements.
Recently, I have received copies of another letter that the State of Michigan is sending out informing my clients that the State of Michigan has yet to receive an unclaimed property report from them. Attached to the letter they received is a State form which basically allows the client to attest to the fact that they have no unclaimed property subject to the reporting requirements.
Because we typically assist with the filing of tax forms, many of my clients are sending this form on to us; however, we do not have the information needed in our office to assist you with the filing of this form. So, I thought it might be a good idea to provide some information to you here regarding the Unclaimed Property Filing Requirements for Michigan.
What is Michigan’s Unclaimed Property Act?
Michigan’s Uniform Unclaimed Property Act, a little known law made effective March 28, 1996, requires holders of unclaimed property to report and remit property belonging to owners who cannot be located, or for whom there is no known address.
So what might a medical or dental practice have in the way of the Michigan unclaimed property filing requirements?
Well, it could be that you sent a check to a patient for duplicate medical payments and the patient never cashed the check. Maybe you have tried to contact the patient, but he or she no longer lives at the address you had on file.
Since this money can not be sent to its rightful owner, the State steps in as the trustee of this person and holds the money until the rightful owner can be found.
The same situation could occur for payments you make to vendors that provide services to your practice or for a payroll check that a former employee never cashed.
How to remit unclaimed property
The form you would use to remit this unclaimed property (form 1223) to the State of Michigan can be found on the State’s website – www.michigan.gov. Simply, type the words – “Unclaimed Property” on the site’s search area and the results will produce a link that will take you to information on the filing requirements and the forms to use.
By providing the Michigan Department of Treasury, Unclaimed Property Division, with complete and accurate information on your annual unclaimed property report, your practice will not only be in compliance with the law but will assist in returning the property to its rightful owner.
How does this happen, you ask? Well, the State of Michigan also has a search engine allowing people and businesses the ability to search for this Unclaimed Property.
Finding $3,000
Last year during one of my visits to a client’s office I was explaining this process to the office manager. We walked over to her computer and I directed her to the State’s site and had her search for money that might be due to the business. Surprisingly, we found money due to the practice that was from an insurance company in excess of $3,000.
Naturally, the office manager’s next question was – I wonder if the State has any of my money? My next thought was – how many other clients have this situation? And why didn’t their accounts receivable management process catch this missing check?
Do you have unclaimed property on hand?
If so, you now know that you are to remit this to the Michigan Department of Treasury.
Do you have any money due you or your business?
Search for it by utilizing www.missingmoney.com.
Just out of curiosity as I was writing this for you I typed in a client’s name in the search engine and found some more missing money.
Could it be yours?
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