The State of Tennessee Unclaimed Property Division uses audits to enforce the Unclaimed Property Law. In the tabs below we explain how we use audits and what to expect if you are audited.
- Types of Audits
- Selecting Audits
Depending on the circumstances the scope of the audit will vary from a complete review of the company or entity’s records to a “desk audit”. A desk audit typically limits the scope of what is being reviewed. For example a desk audit may just be a review of the companies policies and procedures or how they perform the due diligence requirement.
The State of Tennessee Unclaimed Property Division uses various statistical data and analysis to select what companies or entities we will audit. The most prevalent method uses the company or entity’s unclaimed property reporting history. The best defense in being selected for an Unclaimed Property audit is to be in compliance or to enter into a CDA with the State of Tennessee Unclaimed Property Division.
Tennessee law provides for penalties to be assessed for noncompliance with the law. There are two types of penalties:
- Failure to report or perform other duties required by law.
- Failure to pay or deliver property as required by law.
To determine how a penalty is calculated you can use this worksheet.