#unclaimed-property
State escheat and unclaimed property compliance for small and mid-sized businesses, covering dormancy periods for vendor checks, payroll, customer credits, and gift cards, NAUPA II holder report filing, due diligence letter requirements, the Texas v. New Jersey priority rule, and Delaware voluntary disclosure agreements
An overpayment is a liability, not revenue. Book the excess as a customer credit, park unmatched cash in a clearing account, and escheat stale credits.
The DOL expects certified mail, record checks, beneficiary contact, and free online searches — and IRS Rev. Rul. 2019-19 taxes a 401(k) check never cashed.
Under UCC 4-404 a bank may refuse a check presented more than six months after its date — but it may also pay it in good faith and charge your account. A "void after 90 days" legend binds the payee, not the bank. Here is how to age outstanding checks, place a six-month stop-payment order (14 days if oral), reissue safely, and report uncashed checks as unclaimed property.
A watch or clock repair shop's books must treat customer timepieces as bailments (never inventory), consigned parts as off-balance-sheet goods, and deposits as liabilities until pickup. This guide covers how AWCI CW21 certification should show up in the rate card, work-in-process for movements sent to specialists, warranty reserves for comebacks, Section 179 on bench equipment, sales tax on parts vs. labor, and the KPIs — revenue per bench hour, comeback rate, parts-to-labor ratio — that predict breakeven.
An unredeemed gift card stays a customer liability until the facts support otherwise. This guide shows retailers how to book gift cards as deferred revenue, reconcile balances monthly, recognize breakage as a defensible estimate, and preserve the card-level data that state unclaimed-property (escheatment) filings require.
Ohio H.B. 96 creates the nation's first permanent escheat at scale — unclaimed funds reported on or before January 1, 2016 vest permanently in the state on January 1, 2026, with a rolling 10-year bar thereafter, and $1.7 to $1.9 billion is slated for the new Cultural and Sports Facility Fund including $600 million for a Cleveland stadium.
Under ASC 606, loyalty points are a separate performance obligation — part of each sale is allocated to a deferred revenue liability using standalone selling prices, recognized when points are redeemed, with unredeemed value booked as breakage in proportion to redemptions. This guide walks through the journal entries, the proportional vs. remote breakage methods, the chart of accounts, and the state escheatment rules that can block breakage income.
How custom frame shops should structure their books — ASC 606 revenue recognition at pickup rather than deposit, WIP inventory valuation under Section 471, Section 179 expensing for mat cutters and underpinners, state escheat reporting for unclaimed frames, and the per-square-foot KPIs (conservation glass attach rate, labor productivity, average ticket) that distinguish profitable shops.
A working guide for self-storage operators on ASC 606 revenue recognition across rent, lien sale proceeds, deposits, and tenant protection plans; cost segregation that shifts 20–40% of basis into 5- and 15-year lives; and the economic occupancy and RevPAF KPIs lenders underwrite.
Independent theaters keep 10-50% of box office after the distributor split but 85-92% of every concession dollar. This guide covers film rental settlements, ASC 606 deferred revenue for gift cards and movie passes, concession COGS by category, breakage and state escheatment, and Section 179 expensing for digital projectors and recliner seating.
How bowling centers and family entertainment centers should book stored-value game cards, league buy-ins, party deposits, and ASC 606 breakage — with a working chart of accounts, escheat-law pitfalls, and the operating KPIs lenders and buyers expect.
A practical guide for small businesses on identifying unclaimed property — uncashed vendor and payroll checks, customer credits, gift cards — applying state dormancy periods, mailing due diligence letters, and filing the NAUPA II holder report before Delaware or another state opens a contingency-fee audit.
