If you're like me, you've taken advantage of many half off deals through Living Social, Groupon, and many other sources. These deals are a great opportunity for consumers to save money. For the businesses that offer these deals, they are a great way to bring in new customers.
After the expiration date, the deals still retain the value paid to purchase. For example, I paid $25 for $50 to spend at my favorite restaurant. If I hadn't used that deal before the expiration date, it would still be honored at the restaurant for the $25 I paid.
If I never spend that $25 and it goes unclaimed, it becomes an unclaimed property reporting liability for the restaurant from which I purchased the deal.
If you are a consumer who purchases these deals, be sure to use them before the expiration date to get the full value from your purchase. If you're a company who issues a half off deal, remember to keep tabs on which deals have been used and which are going unclaimed.
Should you need to report the unused portion of the deals, report the value that the customer actually paid out of pocket.
Right now, these deals are treated the same as gift cards/gift certificates for unclaimed property reporting purposes. For most states, they are reportable within 3 to 5 years after the expiration date.
These half off deals are fairly new and specific laws may soon be made to address reporting them to the states. I'll be keeping an eye on this trend and will post any updates that arise in the coming years.
Author: Danielle Herring
Product Manager, UPExchange
Labels: UP Best Practices
