Federal Law and Regulations Render Compliance With State Unclaimed Property Laws More Complex for Gift Card Issuers

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

New rules relating to stored-value cards under the federal Credit Card Accountability Responsibility and Disclosure Act of 2009 and subsequent Federal Reserve Board regulations, finalized in March 2010, have come into conflict with state unclaimed property laws. Further complicating the picture for gift card issuers is that some state escheat laws are also in direct conflict with the laws of other states. This article, by Michelle Andre of KPMG LLP, provides an overview of the new federal rules, explains how some states have changed their unclaimed property rules in response to the federal law, and discusses some of the related issues created for gift card issuers.

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