Preparing for the 2026 Unclaimed Property Reporting Cycle: 5 Key Steps to Stay Ahead

Unclaimed property reporting is rarely a “once-a-year” task. Each cycle comes with shifting state expectations, tighter timelines, and more scrutiny—making early preparation one of the best ways to reduce risk and avoid last-minute fire drills.

As organizations move into the 2026 unclaimed property reporting cycle, many are also seeing a continued rise in state audit activity, particularly from third-party contract auditors. A proactive plan now can help ensure cleaner reporting, stronger documentation, and fewer surprises later.

Below are five practical focus areas to help your team prepare for 2026:

1) Start Early and Build a Clear Reporting Roadmap

The most successful reporting cycles are built months before deadlines—not in the final few weeks. Starting early gives your team time to identify gaps, confirm ownership data, and align internal departments without rushing.

Key actions to take now:

• Confirm which entities and jurisdictions are in scope

• Validate your reporting calendar and internal timelines

• Identify key stakeholders (AP, AR, Payroll, HR, Legal, Treasury, IT)

• Create a consistent workflow for review and approvals

  
  

Early planning reduces the chance of missed items and improves overall reporting accuracy.

2) Strengthen Data Quality Before Due Diligence Begins

Data quality drives everything: due diligence success rates, state file acceptance, and audit defensibility. Poor owner data and inconsistent property details are some of the most common reasons reporting becomes time-consuming and high-risk.

A strong readiness step for 2026 includes:

• Cleaning up owner names and addresses

• Filling missing fields (where possible) like email, phone, and tax IDs

• Ensuring property descriptions are consistent and meaningful

• Separating property types cleanly (payroll, AP, refunds, credits, royalties, etc.)

  
  

The earlier you address data issues, the smoother due diligence and reporting will be.

3) Reconfirm Dormancy Rules and Internal Policy Alignment

Dormancy rules vary by state and by property type—and inconsistencies are a frequent audit issue. Many companies unintentionally carry forward prior-year logic that no longer reflects how the business operates today.

For 2026, it’s important to validate:

• When the dormancy clock starts (last activity vs. check date vs. invoice date)

• How reversals, voids, and reissues are treated

• What qualifies as “owner contact” or activity

• Whether your written policies match actual practice

  
  

If your organization has undergone ERP changes, acquisitions, or process shifts, this step becomes even more critical.

4) Plan for Increased Audit Activity and Better Documentation

States continue to treat unclaimed property as a major compliance priority, and many organizations are seeing an increase in audit notices and broader audit scopes. Even if you’re not currently under audit, the best time to prepare is before one starts.

A strong audit-ready approach includes:

• Documenting key decisions and reporting assumptions

• Maintaining clear support for balances and aging

• Retaining prior filings, confirmations, and remittance details

• Building repeatable procedures that hold up year after year

• 
  

The early stages of an audit matter most—scoping decisions and initial responses can influence how far an audit expands.

5) Consider Outsourcing to Reduce Internal Burden and Improve Compliance

For many organizations, unclaimed property reporting becomes difficult to manage internally—especially with limited bandwidth, complex systems, or increased audit exposure.

Outsourcing key compliance functions can reduce risk, save time, and improve consistency.

Working with experienced professionals like Advisely  can help organizations:

• Manage end-to-end unclaimed property workflows

• Perform risk assessments to identify gaps before states do

• Execute due diligence properly and document outcomes

• Create accurate, state-ready reports and filings

• Support audit defense and ongoing compliance improvements

  
  

Whether you need full outsourcing or targeted support, partnering with a dedicated unclaimed property team can make the 2026 cycle more efficient and far less stressful.

Final Thought

Unclaimed property compliance is manageable when it’s proactive—and costly when it becomes reactive. If you want to enter the 2026 reporting cycle with fewer surprises and stronger control over risk, the best time to start is now.