Unclaimed Property Rules and Time Limits for Idaho
Learn the unclaimed property rules and their time limits for the state of Idaho.
In Idaho, all things relating to unclaimed property are handled by the Unclaimed Property Section of the Idaho State Tax Commission.
- As a business owner, this will be the agency to contact if you possess unclaimed property (unpaid wages, for example). Remember that you are subject to both reporting requirements and the obligation to turn over abandoned property to the state.
- It is also the point of contact if you believe that you may have knowingly, or unknowingly, abandoned property (for example, failing to get back a security deposit, didn't receive a tax refund).
Idaho businesses have a number of responsibilities concerning unclaimed property. Initially, written notice must be sent to the apparent owner of the unclaimed property, if known. If the property remains unclaimed, businesses have a number of filing and reporting requirements to fulfill. Most importantly, businesses are required to turn over any and all unclaimed property to the state. Stiff penalties apply to businesses who fail to comply with any of these requirements.
Individuals should know that all Idaho intangible property valued at more than $50, including any incomes and minus any charges thereon, that is held, issued, or owing in the ordinary course of a holder's business and has remained unclaimed by the owner for more than five years after it becomes payable or distributable is generally presumed abandoned. However, this time limit varies depending on the type of property involved. Once abandoned property is turned over to the state by a business, an individual then has 10 years to reclaim it from the state or lose all rights to that property.
Reporting Unclaimed Property in Idaho
A holder of abandoned property must file a verified annual report on Form UP-2, Detail Report of Unclaimed Property, to the State Tax Commission containing prescribed information concerning the property. The report is due on or before November 1, as of June 30 (for insurance companies, it is due May 1, as of December 31 of the preceding year). The filing date may be postponed upon written request.
The Commission may require any person who has not filed a report to submit a verified report stating whether he is holding reportable property. A person or entity that has received an unclaimed property report form in the mail but has no property to report is required to file a zero holder report. A zero holder report can be filed by either completing and mailing in a Form UP-1, Report of Unclaimed Property, coupon or by filing a report online.
Prior notice to owner. Before filing a report with the state, a holder of unclaimed property who knows the whereabouts of the owner must communicate with him and take steps to prevent abandonment from being presumed. Not more than 120 days before filing the report, the holder must send written notice to the apparent owner at his last known address.
If an insurance company learns of the death of the insured or annuitant and the beneficiary has not communicated with the insurer within four months after the death, the company must take reasonable steps to pay the proceeds to the beneficiary.
Delivery. The holder of unclaimed property pays or delivers the property to the State Tax Commission together with the required report.
The State Tax Commission may decline to receive property of insubstantial value. On the other hand, a holder may pay or deliver property before it is presumed abandoned, with the Commission's written consent. The Commission holds such property as ordinary property, and it shall be presumed abandoned only at the end of the presumptive period.
Recordkeeping. A business must generally maintain related records seven years after the unclaimed property becomes reportable. However, the period is three years for traveler's checks, money orders, and similar financial instruments.
Penalties. The penalty for negligently failing to pay or deliver property on time is a fine at the annual rate of five percent of the value of the property from the date the property should have been paid or delivered until actual delivery, unless the failure was due to reasonable cause and not neglect. Irrespective of negligence, interest at 12 percent per annum will be charged from the date the property should have been paid or delivered until actual delivery.
A person who willfully fails to pay or deliver property to the State Tax Commission after written demand is guilty of a misdemeanor.
A purchaser of a business or stock of goods who fails to withhold from the purchase price any amount of unclaimed property that may be due becomes personally liable for such amount. The Commission must, upon request, provide a prospective purchaser with relevant information on any unclaimed property.
Claiming Unclaimed Property in Idaho
In Idaho, all intangible property valued at more than $50, including any incomes and minus any charges thereon, that is held, issued, or owing in the ordinary course of a holder's business and has remained unclaimed by the owner for more than five years after it becomes payable or distributable is generally presumed abandoned. However, this time limit varies depending on the type of property involved. Once abandoned property is turned over to the state by a business, an individual then has three years to reclaim it from the state or lose all rights to that property.
Locating abandoned property held by the state. In Idaho, unclaimed property held by the state may be found by searching the state's website.
To find out if other states may be holding your unclaimed property, search the national database established by the National Association of Unclaimed Property Administrators (NAUPA).
Filing a claim. A person, excluding another state, claiming an interest in any property paid or delivered as abandoned property may file a claim with the State Tax Commission, who must consider and decide on such claim within 90 days after it is filed. The 90-day time period may be extended by the claimant and the State Tax Commission upon their written agreement.
The procedure is essentially the same where the claimant is another state, except that the claim will be allowed only in those circumstances where the other state has some basis for claiming a custodial relationship with the property as enumerated in the statute.
A person whose claim has been denied or whose claim has not been acted upon within the required time period may obtain a redetermination by filing a written protest with the administrator within 63 days after the denial was mailed or after the time period for issuing the denial has lapsed.
Idaho Unclaimed Property Resources
If you're looking for additional information on unclaimed property, we recommend contacting your state's governmental agency that oversees the administration of this area of the law. For help in answering a specific unclaimed property question in Idaho, contact the following:
Idaho State Tax Commission
Unclaimed Property Section
P.O. Box 70012
800 Park Blvd.
Boise, ID 83707-0112
Phone: (208) 334-7623
Fax: (208) 364-7392
Idaho Abandoned Property Time Limits
Each state has rules that specify the amount of time that must elapse before unclaimed property is considered to be abandoned. The amount of time varies with the type of property. The chart below specifies the time period for various classes of property.
|Property Type ||Presumed Abandoned After |
|Bank account ||five years |
|Checks or drafts ||five years |
|Demutualization proceeds ||no specific provision |
|Gift certificates, gift cards, and credit memos ||Gift certificates without an expiration date on the face and credit memos: five years |
|Insurance policies ||life or annuity policies: five years.
The presumed maturity of an insurance policy is two years.
|IRAs or retirement funds ||IRAs and defined benefit plan funds: three years. |
|Money orders ||seven years |
|Other intangible personal property not otherwise specified ||five years |
|Proceeds from class action suits ||no specific provision |
|Property distributable by a business association in the course of dissolution ||the date specified for final distribution
Money that a business association has been ordered by the court or administrative agency to refund is presumed abandoned if it remains unclaimed by the owner for more than one year after it became payable in accordance with the final determination or order providing for the refund (regardless of whether the final determination or order requires the owner to make a claim for it).
|Property held by courts or public agencies ||one year |
|Property held by fiduciaries ||five years |
|Safe deposit boxes ||five years |
|Shares in a financial institution ||five years |
|Stocks, dividends, and distributions ||five years |
|Traveler's checks ||15 years |
|Deposits and advances owed utility company customer ||one year |
|Wages or salaries ||one year |