If your business or agency holds money or other intangible property that belongs to someone you have lost contact with, Arkansas’s unclaimed property reporting requirements make you responsible for turning it over to the State Auditor once a set dormancy period passes. Most holders file a NAUPA-format report and remit the funds by November 1 each year; life insurance companies file by May 1. Miss the cycle and you can face interest charges and, if your records are thin, an audit that estimates your liability upward.
Who Has to File
The statute defines a “holder” as any person or organization obligated to hold, deliver, or pay property to someone else.1Justia. Arkansas Code 18-28-201 – Definitions That covers corporations, LLCs, partnerships, banks, credit unions, insurance companies, utilities, and government agencies.2Arkansas Auditor of State. Report Unclaimed Property If you owe someone money or property and you can no longer find them, you have a reporting obligation.
What Counts as Reportable Property
The Act reaches a broad range of intangible assets:
- Uncashed paychecks, commissions, and expense reimbursements
- Checking and savings balances, CDs, and credit balances
- Stocks, bonds, dividends, and mutual fund distributions
- Life insurance proceeds, refunds, and demutualization proceeds
- Utility deposits and refunds, gift certificates, and vendor credits
- Cashier’s checks, money orders, and traveler’s checks
- Safe deposit box contents
- Mineral proceeds tied to oil, gas, or other extraction
Mineral proceeds carry a special “pay-to-current” rule: once dormancy is met, you remit not only the past-due amounts but all future payments until the owner is located.3Arkansas Auditor of State. 2025 Unclaimed Property Reporting Booklet
When Property Becomes Reportable
Property is not reportable the moment you lose contact with the owner. Arkansas sets dormancy periods that run from the date of the last owner-initiated transaction or contact. The clock varies by property type:4Code of Arkansas Rules. 18 CAR 21-301 – Time Periods
- One year for wages, commissions, and utility deposits and refunds
- Three years for most other property, including bank accounts, stocks, and mineral proceeds
- Fifteen years for traveler’s checks
The one-year wage window catches many employers off guard because it is shorter than most other states require. Payroll teams should flag uncashed checks early rather than waiting until the fall.
The Owner Notice You Have to Send First
Before you turn anything over, you must attempt to reach the owner. For any item worth $50 or more where your records show an address that does not appear inaccurate, you have to mail a written notice telling the owner you hold property subject to the Act. That letter must go out no earlier than 180 days and no later than 90 days before you file your report.5Justia. Arkansas Code 18-28-207 – Report of Abandoned Property
For items under $50 or where you have no usable address, the mailing is not required, but you still report those items. Skipping the notice, or sending it outside the 90-to-180-day window, is the single most common problem examiners find. It can trigger interest on the unreported amounts and complicate any future voluntary disclosure.
Filing Deadlines
Arkansas has two annual deadlines, set by the statute:5Justia. Arkansas Code 18-28-207 – Report of Abandoned Property
- Most businesses and government agencies file by November 1, covering the twelve months ending the prior July 1. In practice, the Auditor’s office needs everything by the last business day in October.
- Life insurance companies file by May 1, covering the preceding calendar year. The effective receipt deadline is the last business day in April.
The Auditor may grant an extension for good cause. Your written request must reach the office at least one day before the deadline and can be emailed to holders@auditor.ar.gov.2Arkansas Auditor of State. Report Unclaimed Property Do not assume approval; send the request early and wait for confirmation.
How to File and Pay
The Auditor’s office accepts electronic filings in the NAUPA (National Association of Unclaimed Property Administrators) standard format.2Arkansas Auditor of State. Report Unclaimed Property For each reportable item, compile:
- The owner’s full name and last known mailing address
- Social Security number or Taxpayer Identification Number, if you have it
- The property type
- The date of the last owner-initiated transaction or contact
- The dollar amount or value
- For mineral proceeds, the legal description of the property interest
Files upload through the Arkansas reporting portal on the Auditor’s website. If you have only a few items, the portal accepts manual entry. The system validates formatting before accepting the file and issues a digital confirmation on success.
Payment follows the accepted report. The remittance must match the aggregate value of the report exactly. ACH debits and wire transfers are preferred for speed and traceability, though the office also accepts mailed checks. Save the confirmations for both the report and the payment; they are your proof of compliance.
Records to Keep After You File
You must retain the records supporting your report for ten years after filing: owner names and addresses, transaction dates, property descriptions, and your due diligence mailing records. Businesses directly liable on traveler’s checks or money orders keep records for three years after filing, with each outstanding instrument showing its state and date of issue.6Justia. Arkansas Code 18-28-221 – Retention of Records
These are the same records a state examiner will ask for during an audit. Holders who cannot produce them face estimation methods that almost always produce a larger liability than the original records would have shown.
What Happens If You Don’t File
A holder who fails to report, pay, or deliver property within the statutory time must pay interest to the Auditor.7Justia. Arkansas Code 18-28-224 – Interest and Penalties If your records are incomplete, the Auditor’s office may use statistical sampling and extrapolation to estimate what you should have reported.8Arkansas Legislature. Arkansas Unclaimed Property Administrative Rules Back interest combined with an estimated liability is where noncompliance turns genuinely expensive.
Catching Up on Missed Years
If you have fallen behind, the Auditor’s office runs voluntary filing programs to bring holders back into compliance. They are open to any holder that is not currently under audit and has not received an audit commencement letter.2Arkansas Auditor of State. Report Unclaimed Property You submit a written request with any required agreements and then conduct a self-examination covering the six years immediately preceding your participation.8Arkansas Legislature. Arkansas Unclaimed Property Administrative Rules Coming forward voluntarily limits the lookback period and generally beats waiting to be found.
Liability Relief Once You’ve Remitted
Once you properly report and remit property to the state, you are relieved of liability to the owner for that property.9Justia. Arkansas Code 18-28-208 – Payment or Delivery of Abandoned Property If the owner later comes looking, they collect from the state.
There is a procedural catch. If an owner sues you after you have remitted, you must send the Auditor a copy of the summons and any relevant information by registered mail at least twenty days before your deadline to answer the lawsuit.10Code of Arkansas Rules. 18 CAR 21-303 – Statutory Indemnification Miss that notice window and you risk losing the indemnification.