State Dormancy Periods for Unclaimed Property Reporting

Understanding state dormancy periods is one of the most important steps in complying with requirements. Unlike federal reporting obligations such as 1099 or W-2 filing, unclaimed property compliance is governed at the state level. That means each state has its own dormancy periods, reporting deadlines, and due diligence requirements. That means businesses with operations, customers, vendors, or employees in multiple states must track and follow each jurisdiction’s unique rules. 

What is a dormancy period? 

A dormancy period refers to the specific period of time during which property remains inactive or unclaimed by its rightful owner before it is considered abandoned property. Once this time has elapsed with no contact or activity from the owner, the property is deemed â€śunclaimed” and must be reported and remitted to the state according to its unclaimed property laws. 

Common Property Types Subject to Dormancy 

Common examples of unclaimed property include: 

  • Uncashed or outstanding checks 
  • Customer credit balances or refunds 
  • Security deposits from utilities or leases 
  • Safe deposit boxes or deposit box contents 
  • Securities, dividends, and mutual fund shares 
  • Payroll checks or commissions 
  • Vendor payments and accounts receivable credits 

Unclaimed Property Dormancy Period by State 

The table below provides a reference point for the most common dormancy periods by state, but always verify the most current statute or administrative guidance before filing. Dormancy rules can change, and some states publish updated requirements annually. 

JurisdictionGeneral Dormancy (years)
Alabama3
Alaska3
Arizona3
Arkansas3
California3
Colorado3
Connecticut3
Delaware5
District of Columbia3
Florida5
Georgia5
Guam3
Hawaii5
Idaho5
Illinois3
Indiana3
Iowa3
Kansas3
Kentucky3
Louisiana3
Maine3
Maryland3
Massachusetts3
Michigan3
Minnesota3
Mississippi5
Missouri5
Montana5
Nebraska5
Nevada3
New Hampshire5
New Jersey3
New Mexico3
New York3
North Carolina5
North Dakota3
Ohio3
Oklahoma5
Oregon3
Pennsylvania3
Puerto Rico5
Rhode Island3
South Carolina5
South Dakota3
Tennessee3
Texas3
U.S. Virgin Islands3
Utah3
Vermont3
Virginia5
Washington3
West Virginia3
Wisconsin5
Wyoming5

Why Dormancy Periods Matter 

Each state establishes its own unclaimed property dormancy period by property type. In other words, the period of inactivity can differ depending on what kind of asset is being held.  

Knowing these differences helps financial institutions, corporations, and other holders correctly determine when to start the due diligence process (the effort to contact the rightful owner) and when to report unclaimed property to the state. Missing these deadlines or misclassifying property types can lead to penalties, interest, or even audit exposure. 

Unclaimed Property Reporting and Due Diligence Obligations 

Before turning over unclaimed property to the state, holders are typically required to perform due diligence. This is a formal outreach process to notify the owner and give them a chance to claim their property. The due diligence deadline and the reporting deadline both depend on the state’s dormancy period and the property type involved. 

For instance, a business might need to send due diligence letters 60–120 days before filing the annual unclaimed property report. After the dormancy period expires and due diligence has been completed, the holder must file the unclaimed property report and remit the property to the appropriate state agency. 

Streamline unclaimed property due diligence today with ReportMyUp.

Posted in