Alston & Bird Tax Blog

Unclaimed Property Advisory

Pushing Beyond the Limit: Examining the Scope of Subpoenas Issued During Unclaimed Property Audits

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A Delaware court quashed a subpoena aimed at an unclaimed property holder, but the victory may be short-lived. Our Unclaimed Property Team explores the latest court decision addressing a subpoena for records dating back to the 1990s. The subpoena asked for every check issued from 27 accounts over 20 years, including cleared and voided checks and checks issued to payees in other statesThe court found the subpoena too expansive and unreasonableThe third-party auditor’s incentives and motives were called into question Read the full advisory here. [...]Read more

Federal Tax Update to IRAs Will (Further) Impact State Escheat Requirements

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Last week, our Unclaimed Property Group examined the recently enacted SECURE Act and the significant changes the new law makes to the treatment of IRAs for state escheatment purposes.

Lengthens required minimum distribution age from 70.5 to 72
Repeals maximum age for traditional IRA contributions
Latest federal tax development to impact the unclaimed property treatment of IRAs

Read the full advisory here. [...]Read more

A Qui Tam Win for Holders, New Federal Common-Law Ruling, JPMorgan Appeals, and a Possible California Amnesty Program

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Our Unclaimed Property Team highlights several recent rulings – both federal and state from across the country – and a new California law that could have broad implications for holders.

Qui tam rulings in Delaware and New York
A fight for removal from state to federal court
A possible California amnesty program

Read the full advisory here. [...]Read more

Univar, Chapter Two: Only a Pair of Constitutional Claims Survive Dismissal (For Now)

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Our Unclaimed Property Team breaks down the many individual issues at stake in the continuing epic of Univar’s struggle against Delaware and its use of a third-party auditor, and how the courts are deciding in light of earlier Third Circuit rulings.

The procedural due process and equal protection claims survive
The other claims were dismissed, but could be revived later
The next chapter will be set (again) in chancery court

Read the full advisory here. [...]Read more

False Claims Act Is Again in Focus, This Time in New York

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Last week, our Unclaimed Property Team uncovered the broader implications of a New York court’s False Claims Act ruling that could create a new risk for holders that report past-due property.

Overview of the action brought by the relator
The court’s decision
Implications for holders

Read the full advisory here. [...]Read more