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Ohio Businesses Must Submit Unclaimed Funds Report by November 1st
Each November 1, businesses are required to send reports regarding unclaimed funds they hold to the Ohio Department of Commerce, Division of Unclaimed Funds. Businesses who must submit these reports:
- are located in the State of Ohio;
- operate in the State; or
- have funds that are due to Ohio residents.
Businesses are required to submit this report even if there are no unclaimed funds to convey. Such a document is referred to as a “negative report.”
Can You Describe What Qualifies as Unclaimed Funds?
Generally, unclaimed funds are lost or forgotten money retained by businesses and banks that must be reported to the Division after accounts become inactive for one year or longer. Accounts encompass:
- inactive checking and savings accounts;
- refund/credit balances;
- uncashed cashier’s checks;
- stocks and bonds forgotten;
- utility deposits; or
- last/unclaimed paychecks.
What Is the Minimum Amount Triggering a Report?
There is no minimum amount that needs to be reported -- except for unclaimed wages. For unclaimed wages, the minimum amount subject to reporting is $50.
How Can Unclaimed Funds Reports Affect Business Associations?
Should a business association have either a payment or a credit that is due from another business association for monies payable for services provided and monies received from either performed services or sales of tangible goods, reporting requirement do not apply. Likewise if the monies due are from suppliers.
Do All Businesses Have the Same Deadline?
For businesses that are not insurance companies, the reporting deadline is November 1, 2025, for accounts dormant as of June 30, 2025. However, for life insurance companies, the deadline is May 1, 2026, for accounts dormant as of December 31, 2025.
Are Extensions Available?
Yes! Extensions are available online for 30, 60, 90 or 120 days. Just one extension can be obtained per reporting year, so choose the most appropriate time period. Extensions must be filed by the reporting deadline. Additional requirements, including due diligence mailings, are required as part of managing unclaimed funds.
What Happens If I Don’t File a Report?
Failure to file an annual unclaimed funds report, or underreport unclaimed funds, can result in civil and criminal penalties. Additionally, an interest rate of 1% per month will be assessed on the balance of unclaimed funds due.
The Ohio Department of Commerce has more information on filing unclaimed funds reports on its website, including a guide to reporting. For additional information, please contact Lauren A. Lowe.
Ms. Lowe gratefully acknowledges the assistance of Anna E. Rowland in preparing this article. Ms. Rowland is a recent graduate of the University of Toledo College of Law.
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Disclaimer: This alert has been prepared by Eastman & Smith Ltd. for informational purposes only and should not be considered legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney/client relationship.