The State of Ohio’s annual unclaimed funds reporting deadline for all companies,  except life insurance companies, is November 1.  (May 1 for life insurance companies) However, companies can receive up to an additional 120 days to file their unclaimed funds report by completing the  Online Annual Report Extension form. The extension of time is automatic upon filing and taxpayers will receive an email confirmation of the extension.

What are Unclaimed Funds?

Unclaimed funds are all intangible property, which is unclaimed by its owner(s) for a specific period of time, such as savings accounts, checking accounts, unclaimed wages, dividends, credit balances and many other types of outstanding checks and balances payable. A detailed list of accounts that are reportable as unclaimed funds, dormancy periods and Nature of Funds Code is available on page 38 in the Annual Report of Unclaimed Funds Forms, Instructions and Information booklet.

However, there are three (3) types of accounts that are exempt from the unclaimed funds reporting in Ohio if certain requirements are met. They include:

• • Payroll Checks less than $50.00,
  • Gift Certificates redeemable for merchandise, and;
  • Business to Business Exemption. The Business to Business Exemption exempts amounts paid to or overpayments received from a company as the result of the receipt or issuance of an invoice.

See the Annual Report of Unclaimed Funds Forms, Instructions and Information booklet for more information about accounts that are exempt from Ohio’s unclaimed funds reporting requirements.

Who Must File

All businesses that are located in Ohio or operate in Ohio, or hold funds due to Ohio residents, are required to file an Annual Report of Unclaimed Funds. In addition, there is no minimum reportable dollar amount for unclaimed accounts, except for payroll checks less than $50.00 which are not reportable unclaimed funds The only entities exempt from reporting are political subdivisions of the State, and Internal Revenue Code 501(c)(3) tax exempt hospitals.

Even accounting firms and law firms are required to file an Annual Report of Unclaimed Funds.

Significant - Failure to File Penalties

For failing to report unclaimed funds or underreporting unclaimed funds, the company may incur civil penalties of $100.00 per day.  The taxpayer may also have to pay interest at a rate up to 1% per month on the balance of unclaimed funds due per O.R.C. section 169.12.

If you have not filed unclaimed funds and are operating a business in Ohio, you should reach out to David Knuff who can advise you on unclaimed funds.