As a general rule, any business or tax-exempt entity that holds unclaimed property of a person who resides in Pennsylvania must file an unclaimed property report with the Pennsylvania Department of Treasury by April 15 of each year and turn over to the Department of Treasury the unclaimed property. The Pennsylvania statutory definition of unclaimed property is very broad and includes, among other things, unused gift cards and gift certificates that were issued to Pennsylvania residents, uncashed paychecks, uncashed dividend checks, unclaimed deposits held by financial institutions, and uncashed checks made payable to vendors. Holders of unclaimed property that fail to file an annual report may be subject to significant penalties and interest.

The Department of Treasury currently is offering an amnesty program for holders that failed to file for past periods or have not yet filed the report that was due April 15, 2010. Under the amnesty program, holders that file a report by October 31, 2010, will be granted amnesty from all penalties and interest. The amnesty program is not available to holders that are currently under audit by the Department of Treasury or holders that have received notification from the Department of Treasury of their failure to report. However, holders that have received such a notice should act quickly to come into compliance to minimize penalties and interest.

Ballard Spahr LLP attorneys are available to assist holders in determining whether they have a filing obligation in Pennsylvania and to assist holders that wish to participate in the Department of Treasury's amnesty program.

For further information, please contact Wendi L. Kotzen, 215.864.8305 or kotzenw@ballardspahr.com.


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