SECTION 735:80-11-2. Field audits conducted when

(a)   A Field Audit will be conducted when there is a reason to believe that a holder has not properly reported unclaimed property as defined by the Act. A fifteen (15) day notification of audit letter will be mailed to the holder.

(1)   Reasons to believe may include, but not be limited to:

(A)   Failure to report; or

(B)   Failure to file positive reports; or

(C)   Failure to report types of property normally reported by like businesses or associations; or

(D)   Failure to substantiate deduction, in whole or in part, for items reported, but not remitted; or

(E)   Failure to report and/or remit balances due an individual on the "as of" date of the report year; or

(F)   Failure to remit contents of safe-deposit boxes; or

(G)   Failure to report legal description of unclaimed mineral interests; or

(H)   When amounts reported and/or remitted are not comparable to reports received from like holders.

(2)   Any holder who, after proper notification, refuses access to records requested by the examiners shall be referred by the Unclaimed Property Division to legal counsel of the Treasurer for appropriate action.

(3)   Any holder using an outside agency for the issuance of stock and/or the paying of dividends on such stock shall, prior to the beginning of the audit, prepare a written request to such agency authorizing the agent to provide access to the holder's stock and dividend records for the purpose of identifying any stock or dividends subject to the Unclaimed Property Act.

(4)   At the completion of a field audit a "Statement of Examination Findings and Demand Letter" shall be delivered to the holder so examined. This letter shall be delivered at the closing conference or may be delivered by certified mail, if considered more feasible. Such letter shall contain sufficient information to make the holder aware of his reporting obligations and legal options.

(b)   The holder shall have sixty (60) days in which to review the examination findings and propose adjustments to such findings. No later than sixty (60) days after the date of the examination findings letter the holder shall cause to be generated an amended annual report. If the holder disagrees with the facts or law, he must file an official protest within the sixty (60) day period or the amount as set out by the examination findings letter will become absolute and final and become immediately due and payable.

(c)   A holder may elect to file and pay under protest. Interest penalties will cease to accrue on the date of such payment. Application for waiver of interest or penalty shall be in a form as prescribed by the Treasurer. The Treasurer may, at the Treasurer's discretion, waive the interest or penalty if a holder has failed to remit unclaimed property due to misinterpretation of the law or the facts, or if a holder is unable to pay interest or penalty due to insolvency.

(d)   Audit costs shall be assessed against the holder when:

(1)   The holder fails to report within sixty (60) days after he has received a written demand from OST; or

(2)   The holder has not filed a report and the examination reveals that he has willfully or without reasonable cause failed to report property which was discovered during the examination; or

(3)   The holder has filed a report and additional property is discovered during the audit and OST establishes that the holder willfully or without reasonable cause failed to report; or

(4)   If the audit is performed out-of-state at the request of the holder.

(e)   Except as otherwise provided or required by law, audit costs shall not exceed audit findings.

[Source: Transferred from 710:80-11-2 at 60 O.S., § 688, eff 7-1-99 (see Editor’s Notice published at 17 Ok Reg 217); Amended at 17 Ok Reg 2167, eff 6-12-00]