A big worry is states’ use of outsourced auditors to search businesses for property that should be turned over. The audit firms get a piece of collected property, which motivates them to be overly aggressive, industry representatives say.
“For state treasurers, it’s pretty appealing,” said Harold Kim, executive vice president at the U.S. Chamber of Commerce’s Institute for Legal Reform. “They just contract out to a private firm, which does all the work for a contingency fee.”
It’s part of a pattern of states adopting “more and more aggressive strategies, along with their desire to grab more revenue,” said Hogroian.