Natural disasters can affect anybody at any time. One way you can lessen the effects of natural disasters is to be well-prepared. The IRS has offered several tips to prepare for the worst that mother nature has to offer, and assures that in the event of an emergency, they are available to help handle disaster-related issues.
Update Your Emergency Plans
Because disasters can happen at any time, it’s essential to review emergency plans annually. Personal and business situations can change over time as individuals or businesses move, families grow, or employees come or go – and plans always need to be updated accordingly. Make plans today and make sure everyone is prepared to follow them. This includes discussing a disaster plan with your family and neighborhood organizations.
Keep E-Copies of Key Documents
Protect precious documents such as bank statements, tax returns, identifications, and insurance policies by storing duplicate copies in a safe place – such as a water-proof or fire-proof container – away from the original copy.
Keeping track of documents is easier now that many financial institutions provide statements and documents electronically, however, if the original documents are only available via paper copies, do yourself a favor and scan them into an electronic format. This way you can download them to a storage device and rest assured that you will always have them when needed.
Document Your Valuables
For insurance purposes, it’s always a good idea to photograph or videotape your home’s contents – especially items of greater value. This will make it easier to claim insurance or tax benefits in the event of a disaster or break in. Photographs can help you to prove the fair market value of items for insurance or casualty loss claims, and ideally, you should store these photos digitally and/or with a friend or family member who lives in a different area so you will have them if needed.
The IRS provides a disaster loss workbook, Publication 584, that can help you compile a room-by-room list of belongings.
Fiduciary Bonds
Employers who use payroll service providers should ask if the provider has a fiduciary bond in place. This bond provides protection to the employer in the event of default by the payroll service provider.
The IRS Is Ready to Help
In the event of a federally-declared natural disaster, taxpayers can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues.
To request back copies of previously-filed tax returns and all attachments, including W-2 forms, you may file Form 4506, Request for Copy of Tax Return. Alternatively, transcripts showing most line items on past returns can be ordered through the Get Transcript link at www.IRS.gov, by calling 1-800-908-9946, or by using Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript, or Form 4506-T, Request for Transcript of Tax Return.
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