Earlier this year, GRF published a blog post on state unclaimed property laws that noted the state initiatives for self-audits by taxpayers, including nonprofit organizations.
Members of GRF’s Nonprofit Tax Team have been contacted recently by a number of Washington, DC-based nonprofits regarding a DC Self-Audit Notice. It is our understanding that many states, including the District of Columbia, are using 3rd-party vendors to drive these audits on behalf of the state. In the case of DC, taxpayers have been given 90 days to conduct a self-audit of 10 years of activity, report its findings, and make payment to DC.
As outlined in GRF’s blog post, there are steps that an exempt organization can take to handle the self-audit as efficiently as possible, including the use of an advisor who can guide an organization on how to conduct the audit effectively, minimize the liability, and properly report the findings. We also recommended that, if an organization does not currently have processes in place to regularly identify and report unclaimed property, it adopt these processes going forward.
GRF can assist an organization with both the self-audit and in the implementation of appropriate processes for compliance with state unclaimed property laws. For questions about unclaimed property laws or for assistance with the self-audit process, please contact any member of GRF’s nonprofit tax team at 301-951-9090.