What is the best way for a small business to pay money owed to individual customers?

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What is the best way for a small business to pay money owed to individual customers?

We have a small, self-publishing company. We owe royalties of less than $25 to several deceased authors/customers. What is the best way to pay them? We must report royalties to the IRS so we already have the tax IDs of these people. Can we just send of check made out to “The estate of ‘deceased author?'”

Asked on June 18, 2009 under Business Law, Arizona

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Most likely is to locate them and arrange for the cashiers' checks to be paid to those customers' estates.  Then, ensure you sent it certified return receipt.  If the checks are returned, at some point you will most likely need to escheat them to the state.  Check with your state's Dept of Treasury on how to do that and the time frames.


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