Voluntary Compliance Program

Overview

Every business entity is required to report unclaimed property assets to the State of Arkansas annually.  As an ongoing effort to promote compliance with the Unclaimed Property Law, the State Auditor’s Office has established a Voluntary Compliance Program, which is available for the holders that have reported to our office and have not been in compliance with the Unclaimed Property Law, but want to become compliant.  The Voluntary Compliance Program allows for an opportunity for holders upon self-review to come forward and report specific property types that have not been previously reported or may have been reported using an incorrect dormancy period or unclaimed property due to mergers/acquisitions.  The Voluntary Compliance Program also allows for an opportunity for holders upon self-review to report all known late-reported property types on a one-time basis.  All first-time filers with our office are offered a one-time amnesty from penalties and/or interest on late-reported items to the date of incorporation.  The State of Arkansas reserves the right to audit a holder filing its first report and assess penalties and/or interest on late-reported items if it is found that the holder has not fulfilled the obligation of reporting to the date of incorporation.

 

General Guidelines

Eligibility

Any holder who wants to comply with the Arkansas Unclaimed Property Law is eligible to file a Voluntary Compliance Agreement, except when:

  • A holder is currently under an Unclaimed Property examination by the Auditor of State or a third party acting on the Auditor’s behalf;
  • A holder, which includes any subsidiary and all related parties, has been contacted by the State Auditor's Office or a third party acting on the Auditor’s behalf of its intent to conduct an unclaimed property examination.

Look Back Period

The holder shall complete a review of its books and records looking back 10 reporting periods, as well as for all subsequent report years, and remit all unclaimed property due to the State of Arkansas for those years. Should records not be available for the full 10 year period, an extrapolation and statistical sampling methodology may be utilized for the missing years.

Duration of Program

Under a Voluntary Compliance Agreement, a holder has six months to complete its review, to perform due diligence and to file the report. Six month period extends from the date the authorized representative of the UCP division approves and signs the agreement.

Examination Provision

The State of Arkansas reserves the right to audit a holder issued a Voluntary Compliance Agreement.  Interest and penalties may be assessed pursuant to Arkansas Code Annotated §18-28-224 (a) and (b) on all unclaimed property due for all reporting years, if it is determined that the property reported under a Voluntary Compliance Agreement is materially under-reported. The State of Arkansas reserves the right to fully audit the holder in such case.

Enrollment

A holder, considering participation in the Voluntary Compliance Program, should request a “Voluntary Compliance Agreement” by mail, fax, or e-mail.

Arkansas Unclaimed Property Division
PO Box 251920
Little Rock, AR 72225-1920

Contact Information
Josh Wood
Voluntary Compliance Officer
501-371-2129
Fax: 501-683-4285

E-mail: Holders@auditor.ar.gov


Steps In Brief

  1. Holder’s request to participate shall contain all of the following:
    • Holder’s name, type of business, and primary address
    • List of all subsidiaries and all related party entities participating in the VCP
    • Federal Employer Identification Number for each entity participating
    • Holder contact information
  2. Upon confirmation of the eligibility of your company to participate in the Voluntary Compliance Program, the Voluntary Compliance Agreement will be mailed to your designated authorized representative. The Original completed agreement must be signed by an authorized officer of your organization.
  3. Once the original completed and executed Voluntary Compliance Agreement is returned to the Arkansas Unclaimed Property Division, the Agreement will be reviewed and if approved, signed by an authorized representative of the UCP Division.  The holder will then be provided with a confirmation letter which will include relevant due dates. The holder must submit the completed Unclaimed Property Annual Compliance Report(s) by the indicated due date in order to avoid assessment of any penalties and interest consistent with Arkansas Code Annotated §18-28-224 (a) and (b).
  4. The State reserves the right to assess interest on any liability being reported under this Voluntary Compliance Agreement, if the Agreement has not been received or an extension has not been granted within the six-month period.

Important Agreement Considerations

  • The Voluntary Compliance Agreement may not be altered without written consent of the State.
  • The State of Arkansas reserves the right to audit a holder of a Voluntary Compliance Agreement after the holder has filed their report and remitted property under the Voluntary Compliance Agreement.
  • The State of Arkansas reserves the right to deny or void the Voluntary Compliance Amnesty Agreement or first-time filer exemption if a holder does not adhere to the program policies and procedures.