Written by: Sarah Stojkovic—Manager, Unclaimed Property
The California Voluntary Compliance Program (VCP) is a new initiative by the State Controller’s Office (SCO) to encourage holders of unclaimed property to report and remit their liabilities in a timely and accurate manner. The VCP offers several benefits for holders, such as:
- Waiving the 12% annual interest rate that normally applies to late or underreported unclaimed property
- Allowing flexible due dates for filing the report and remitting the property, within a 12-to-18-month period
- Exempting the holder from examination by the SCO for the report year and the prior four report years
- Providing free online training and guidance on how to comply with unclaimed property laws and regulations
Who Benefits from the California VCP?
Several types of taxpayers can benefit from this program, including:
- First-time filers
- Holders with past due property owed to California
- Holders incorporated in California
- Companies with acquisition history
- Holders who have identified errors or overlooked liabilities
Who is eligible for the California VCP?
The VCP is open to any holder of unclaimed property that meets the following criteria:
- The holder is not under a current examination by the California SCO or any other state for unclaimed property issues
- The holder is not involved in any civil or criminal prosecution related to the unclaimed property law
- The holder has no unresolved interest assessments from the past five report years
- The holder has not received a waiver of penalties and interest from the SCO in the past five report years
How to apply for the California VCP
The application process for the VCP is best handled with the help of an advocate. The holder must complete and submit the VCP01 Form by email, fax, or mail to the SCO. The SCO will review the application and send an enrollment approval letter to the holder, confirming acceptance into the VCP and the assigned due dates. Your advocate will then walk you through the necessary steps of the program to make sure that you do not risk disqualification and ensure your ultimate success.
How to report and remit under the California VCP
An advocate can help guide you through identifying your unclaimed property obligations and the necessary remediation and due diligence efforts for the program. An advocate can also act as your intermediary to communicate with the state on your behalf to adhere to all deadlines, check-ins, and other requirements of the VCP and assist in reconciling the final reportable items to the state in the required NAUPA template.
Partner with the Unclaimed Property Experts
DMA has extensive experience and expertise in advocating unclaimed property issues for clients across various industries and jurisdictions. Our experts can provide you with guidance on how to qualify for the VCP, how to identify and verify your unclaimed property, how to complete and submit the application and the reports, and how to resolve any issues or questions that may arise along the way. With DMA’s assistance as your advocate, you can take advantage of the VCP and save time and money while fulfilling your unclaimed property obligations.
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This website content should be used for general informational purposes only, and not as a substitute for consultation with professional tax, legal, or other competent advisors. Before making any decision or taking any action based upon information contained on this website, you should consult with a DMA professional. |
Don’t Miss Out on the benefits of California’s new VCP
Learn how to save time and money on unclaimed property compliance with the help of DMA’s experts.