NEWS: Wisconsin law requires credit unions, as holders of property, to report and remit unclaimed property annually to the Wisconsin Department of Revenue, the administrator of Wisconsin’s unclaimed property program. Wisconsin unclaimed property laws were recently amended with 2021 Wisconsin Act 87 which became effective on November 7, 2021. The Act conforms Wisconsin’s unclaimed property laws — found in Wis. Stats. Chapter 177 — to many of the provisions in the Revised Uniform Unclaimed Property Act of 2016. These updates were needed to address technological innovation and recognize new types of property not previously included in the law. The League’s ii Release No. 0007, Wisconsin Unclaimed Property Law – has been updated to reflect the revisions to Wis. Stats. Ch. 177.
Some of the major provisions affecting credit union reporting are:
Dormancy period changes
Act 87 made changes to various time periods after which certain types of property are presumed to be abandoned, such as:
- Money orders and similar instruments decreased from 7 years to 5 years. §177.0210(2).
- Amounts owed by an insurance company on a life or endowment insurance policy or an annuity contract that has matured or terminated decreased from 5 years to 3 years. §177.0210(7).
- Tax-deferred retirement accounts decreased from 5 years to 3 years. §177.0202.
Holder notices to apparent owners
- Holder notices are required to be sent by 1st class mail to the apparent owner’s last-known address for all properties of $50 or more. §177.0501(1).
- Holder notices may also be sent via email if the apparent owner has consented to receive email delivery from the holder. The notice must also be sent via 1st class mail to the owner’s last-known address. §177.0501(2).
- Holder notices must do all of the following (§177.0502):
- Contain a heading that reads substantially like:
“Notice. The State of Wisconsin requires us to notify you that your property may be transferred to the custody of the state’s unclaimed property administrator if you do not contact us before [the date that is 30 days after the date of the notice]”;
- Identify the nature and value of the property, unless the property does not have a fixed value;
- State that the property will be turned over to the administrator;
- State that after the property is turned over to the administrator, an apparent owner that seeks return of the property shall file a claim with the administrator;
- State that the property may be sold by the administrator; and
- Provide instructions that the apparent owner shall follow to prevent the holder from reporting and paying or delivering the property to the administrator.
Holder interest and penalties
- The requirement for holders to pay interest in regard to failure to timely pay or deliver property has been repealed.
- Late filed reports are subject to a $150 penalty. §177.1204(1)(a).
- Late payments are subject to a penalty equal to 15% of the value of the property. §177.1204(2)(a).
- Additional penalties may be imposed for $100 each day past the due date of a written request by the DOR to file a report or pay or deliver property. §§177.1204(1)(b) and (2)(b).
Voluntary disclosure program
- The law now provides for a limited-time opportunity to report unclaimed property from the previous five years without penalty.
- The application is available from February 1, 2022 through February 28, 2023.
- See the Department of Revenue’s website for a link to the application.
Retention Period
- Holders are required to retain records for 10 years. §177.0404.
Credit unions should familiarize themselves with the new provisions of the law prior to this year’s reporting period. Holder reports and remittance of payment and securities are due each year by November 1.
Additional resources available:
- The Department of Revenue’s Unclaimed Property Holder Report Guide, (Publication 82, Rev. 3/22) – last updated in March 2022, walks holders through the unclaimed property reporting process.
- Department of Revenue Holders’ Common Questions.