- Who handles it
- The Texas Comptroller of Public Accounts, which runs the state unclaimed property program
- What gets filed
- An annual holder report for property presumed abandoned, plus the notices a business sends before it reports
- Timing
- Texas holders report by July 1 for property held as of the earlier March 1 cutoff, so plan the cleanup before a spring or summer sale
Watch for: Ignoring old uncashed checks and credit balances. A buyer's diligence can find them, and they may be owed to the state.
This guide is general information and is not tax or legal advice. Confirm every step with your attorney, your CPA and the Comptroller before you act.
What counts as unclaimed property
Businesses hold money that belongs to others, such as uncashed payroll or vendor checks, customer credit balances, refunds and overpayments. After a set dormancy period without contact, Texas expects holders to report that money.
The Comptroller's rules explain the property types and the dormancy periods, so ask your CPA which ones apply to you.
Reporting timeline
Texas holders generally file an annual report by July 1, covering property presumed abandoned as of the prior March 1. Before reporting, a business usually has to try to reach owners of larger amounts.
Keep records of the contact attempts, since the state expects documentation.
Why buyers care
Stale balances on the balance sheet signal weak books. A buyer's accountant may flag old checks as a liability and ask the seller to resolve them before closing.
Fixing it early also helps you present accurate trailing twelve month financials.
Questions to bring to your CPA
- Which of my outstanding balances count as reportable?
- Have the dormancy periods been met?
- Can I still refund a customer before the report is due?
Handled early, this is a small bookkeeping task rather than a closing problem.
What to keep
Keep records of reported property and your attempts to reach owners. Texas expects holders to retain these records for a set period, so ask your CPA how long and store them with your closing files.
Bring the report and the supporting records to the buyer's accountant when asked, so there are no surprises in diligence.
Employees, customers and vendors
Most unclaimed items come from three places: payroll checks never cashed, vendor refunds nobody collected and customer deposits left after a job was cancelled. Walk through each account type once before you list.
Sellers who clean this up usually find a handful of items, and the cleanup takes a few hours with the bookkeeper.
Clean up before you list
- Pull a list of checks outstanding for months and old credit balances.
- Try to reach each owner and document your attempts.
- Ask your CPA to file the report for property that stays unclaimed.
- Update the balance sheet so it matches.
Our note on how buyers read your books shows why this matters. See the other seller form guides, then request a price range.