Facing an unclaimed property claim of almost $300,000, Select Medical Corp., a Pennsylvania-based hospital, settled their federal lawsuit against the State of Delaware.
Last March, Delaware officials sent a letter to Select Medical Corp., giving them 30 days to pay for unclaimed accounts payable before facing penalties and interest.
Select Medical Corp. argued that the claim violated its due process rights and the commerce clause of the U.S. Constitution, amounting to an unlawful taking.
As a major revenue source for the state of Delaware, abandoned property claims and taxes bring in over a half-billion dollars – more than the annual revenue from overall corporate taxes in the state.
With many states facing budgetary shortfalls, many have become more aggressive with audits targeting unclaimed property compliance and reporting. As a result, organizations need to effectively manage a variety of state laws governing unclaimed property compliance as well as identify and report unclaimed property to numerous jurisdictions – all with varying deadlines.
While not involved with the Select Medical Corp. case, SC&H Group’s Unclaimed Property experts serve as trusted advisors and advocates who take a proactive, tailored approach with every client engagement to achieve a favorable outcome.
Be sure to check out this SC&H blog Q&A with Patricia Hopper, Principal at SC&H, as well as Eric Mauldin and Jennifer Arias, both Senior Managers at SC&H, who provide key insights into the challenges and solutions regarding unclaimed property compliance.