WASHINGTON, D.C. — With hurricane season nearing its peak and wildfire threats persisting across the country, the Internal Revenue Service (IRS) is urging individuals and businesses to review and update their emergency preparedness plans as part of National Preparedness Month.
The agency is emphasizing the importance of safeguarding critical records, maintaining thorough inventories, and understanding available IRS disaster relief options to ensure faster recovery in the event of a natural disaster.
Protecting Critical Documents
The IRS advises taxpayers to store essential records — such as tax returns, birth certificates, Social Security cards, insurance policies, and property titles — in fireproof and waterproof containers. Creating digital backups and keeping copies with a trusted contact outside potential disaster zones can further reduce the risk of losing vital information.
Documenting Property and Assets
Maintaining an inventory of personal and business property can significantly streamline insurance claims and tax reporting after a disaster. The IRS recommends using photographs, videos, and detailed written descriptions, including make, model, and year, to support potential claims. To assist taxpayers, the agency offers disaster loss workbooks designed to help individuals and businesses catalog possessions and equipment.
Reconstructing Lost Records
If critical documents are damaged or destroyed, the IRS notes that banks, insurance companies, and other financial institutions can often provide electronic copies. The IRS also offers resources and guidance to help taxpayers reconstruct financial and property records when originals are unavailable.
Employer Guidance on Payroll Protection
For businesses, the IRS encourages employers to confirm that payroll service providers have a fiduciary bond, ensuring an added layer of protection if disruptions occur. Companies can also set up an Electronic Federal Tax Payment System (EFTPS) account, allowing secure and trackable payments by phone or online — a critical safeguard if access to physical offices is interrupted during a disaster.
IRS Disaster Relief Programs
When the federal government declares a disaster, the IRS often automatically extends filing and payment deadlines for affected taxpayers based on their IRS address of record. Relief can also be requested by relief workers, individuals living outside affected areas, and those whose tax records were impacted, by calling 866-562-5227.
Additionally, uninsured disaster-related losses may be deducted on federal tax returns for either the year of the loss or the previous year, potentially easing financial burdens. Details on eligibility and procedures can be found in IRS Publication 547: Casualties, Disasters, and Thefts.
Preparing Now to Recover Faster
The IRS stressed that proactive preparation can significantly shorten recovery times and reduce stress in the aftermath of hurricanes, wildfires, or other natural disasters. By safeguarding essential records, documenting property, and understanding available tax relief options, individuals and businesses can better protect both their financial well-being and peace of mind.
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