Any person or entity in possession of property (subject to the Unclaimed Property Law) which belongs to another, or who is trustee in case of a trust, or who is indebted to another person on an obligation subject to the Unclaimed Property Law, is deemed a holder of unclaimed property and must report that property to the state.
All holders, whether located in Arizona or in other states, must report to the State of Arizona any unclaimed property they hold that is owed to Arizona residents. Arizona domiciled businesses must also report all property where the owners name and address is unknown. All business entities are responsible for filing reports on behalf of their branches, divisions or other affiliates, including:

Banking and financial institutions including state or federally chartered banks, trust companies, savings banks, private bankers, savings and loan associations, credit unions and investment companies.

Business associations wherever located, such as a corporation, joint stock company, business trust, partnership, proprietorship, cooperative, or other association for business purposes (including all insurance companies).
Utilities owned and operated for public use.

Other legal entities including state, county and city governments, political subdivisions, public authorities, public corporations, estates, trusts or any other legal or commercial entity.

Information about other states and their unclaimed property reporting requirements can be accessed through the NAUPA (National Association of Unclaimed Property Administrators) web site at www.unclaimed.org

 

Holders must report all unclaimed property that is owed to an Arizona resident or business. In addition, Arizona domiciled holders should report items without an owner name or address and all unclaimed property where the last known address is in a foreign country.

 

Unclaimed property includes, but is not limited to such items as money, uncashed checks, drafts, state warrants, uncashed payroll checks, interest dividends or income, savings and checking accounts, safe deposit box contents, credit balances, customer overpayments, unidentified remittances, mutual funds and stock.

 

Reportable items with respective property codes and dormancy periods are located in the NAUPA property type codes section.

 

The more information the State receives with your report the less likely they are to contact you each time a claim is filed, or to refer claimants to your escheatment specialist, for additional information.

• Remember to review Arizona’s Payment Protocol for each relationship type that you report
• Remember to pick the code that correctly reflects the named persons relationship to the property
• Keep in mind the relationships of multiple payees
• Make sure owner names are compete
• Include all known additional identifiers
  • Social security or Tax Id numbers
  • Dates of Birth
  • Policy, account or check numbers
• Include zip codes
• Double check State abbreviations

 

In Arizona, a life insurance company that is a holder of property that is presumed abandoned shall file its report before May 1, and the report shall cover the prior calendar year. Any other holder of property that is presumed abandoned shall file the report before November 1 and the report shall cover the last twelve months before July 1 of that year. A holder may also make a onetime election to annually report the property at the same time it reports its income for the purposes of income tax pursuant to Title 43.

 

Requests for an extension of time for filing a Report of Unclaimed Property must be submitted to the Holder Compliance Unit prior to either April 1 or October 1 (whichever applies), and they must be in writing. Please include the entity's FEIN with the request.

Please note: The authorization of an extension only applies to the filing of the report, in order to avoid the interest penalty, payment, along with a copy of an approved Holder Reporting Extension Request, must be submitted to the Holder Compliance Section by either the May 1, or November 1 report due dates, whichever applies. In addition, holders are required to maintain the records that contain the information required to be included in the report for five years after the holder files the report.

Arizona Unclaimed Property law requires that prior to 120 days before the holder of property that is presumed abandoned files their report, the holder shall send a written notice to the apparent owner that states that the holder is in possession of the property if all of the following apply:

1. The holder has an address in the holder's records for the apparent owner and the records do not indicate that the address is inaccurate.
2. The claim of the apparent owner is not barred by any other law of this state.
3. The value of the property is at least fifty dollars.

Taking the time to cross match the owners of unclaimed property against active customer files often has positive results.  Due diligence mailings help Holders maintain good customer relations, prevent future abandoned property and correct deficiencies in records and processes

Electronic Reporting: All holders reporting 11 or more individual accounts must report via magnetic media, following the NAUPA format specifications, and also provide a hard copy printout. Reports not received according to the prescribed format will be returned for correction.

Manual Reporting: A holder with 10 or less records to report may file using the paper form provided. When reporting on paper form, all information must be typed or printed clearly, in ink.

For assistance with reporting, contact the Holder Compliance Section at (602) 716-6031. You can also e-mail us.

Arizona allows a dormancy charge when:

• There is a valid and enforceable written contract, 
• The Holder regularly imposes the charge,
• The charge is not regularly reversed or otherwise canceled.,
• Deduction is limited to an amount that is not unconscionable. A.R.S.§ 44-305.

Arizona verifies all reports with a dormancy fee.

All checks must be made payable to “Arizona Unclaimed Property Unit” for the total amount listed on the Report of Unclaimed Property. Your remittance must be in U.S. currency. Foreign currency cannot be accepted.

• Securities – register in Arizona’s nominee name CACTUS & CO.
• Mutual Funds – transfer to an account registered to the State of Arizona, Unclaimed Property Unit.  A new account should be set up for each escheat year.
• Safe Deposit Boxes – Do not mail the contents with your report.  Contact our Safekeeping Team at UnclaimedProperty@azdor.gov to arrange for an appointment.

 

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