IRS Offers Tips for Disaster Preparedness
The Internal Revenue Service (IRS) wants to remind taxpayers to prepare for hurricanes and other natural disasters in advance. By taking a few steps before disaster strikes, taxpayers can reduce their stress when it comes time to file claims or rebuild after the catastrophic event.
Update emergency plans.
Because a disaster can strike any time, be sure to review emergency plans annually. Personal and business situations change over time, as do preparedness needs. Make plans ahead of time, and be sure to practice them.
Create electronic copies of documents.
Taxpayers should keep a duplicate set of key documents. Keep documents including bank statements, tax returns and insurance policies in a safe place. Doing so is easier now that many financial institutions provide statements and documents electronically, available on the Internet. Even if original documents are available only on paper, scan them into an electronic format and store them on DVD, CD, or cloud storage.
Document valuables.
It's a good idea to photograph or record a video of the contents of any home, especially items of higher value. Documenting these items ahead of time will make it easier to claim insurance and tax benefits after a disaster strikes. The IRS has a disaster loss workbook, Publication 584 (Link opens in a new windowhttps://www.irs.gov/forms-pubs/about-publication-584), which can help taxpayers compile a room-by-room list of belongings. Photographs can help prove the fair market value of items for insurance and casualty loss claims.
The IRS is ready to help.
In the case of a federally declared disaster, impacted taxpayers can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues. Taxpayers can request copies of previously filed tax returns and attachments, including Forms W-2, by filing Form 4506, Request for Copy of Tax Return (Link opens in a new windowhttps://www.irs.gov/forms-pubs/about-form-4506). Alternatively, order transcripts from the IRS through the Get Transcript page (Link opens in a new windowhttps://www.irs.gov/individuals/get-transcript) or by calling 800-908-9946.
U.S. Internal Revenue Service. (Reviewed 2018, August). IRS offers tips for disaster preparedness (IRS Special Edition Tax Tip 2017-08). Retrieved December 25, 2018, from https://www.irs.gov/