Reminder: September is National Preparedness Month; taxpayers should prepare for natural disasters
September is National Preparedness Month. Taxpayers can begin getting ready for a disaster with a preparedness plan that includes protecting and duplicating essential documents, creating lists of property and knowing where to find information if needed.
In the aftermath of a disaster, having updated documents and other information readily available can help victims apply for the relief available from the IRS and other agencies. Disaster assistance and emergency relief may help taxpayers and businesses recover financially from the impact of a disaster, especially when the federal government declares their location to be a major disaster area.
Protect key documents; make copies
Taxpayers should keep critical original documents inside water and fireproof containers in a safe place. These include tax returns, birth certificates, social security cards, deeds, titles, insurance policies and other important items.
In addition, consider having a relative, friend or other trusted person keep duplicate copies of these documents at a location away from a potentially impacted disaster area.
If original documents are on paper, they should be scanned or photographed into a digital file format and stored in a secure digital location. This can provide added security and portability.
Document valuables
Maintain a detailed inventory of the contents in your property and business. Taxpayers can take photos or videos to record their possessions and should also write down descriptions that include year, make and model numbers where appropriate.
The IRS disaster loss workbooks can help individuals PDF and businesses compile lists PDF of belongings or business equipment. After a disaster hits, this kind of documentation can help support claims for insurance or tax benefits.
Reconstructing records
Reconstructing records after a disaster may be required for tax purposes, getting federal assistance or insurance reimbursement. Most financial institutions can provide statements and documents electronically, an option that can aid the reconstruction process. For tips on reconstructing records, visit the IRS' Reconstructing records.
Employers should check fiduciary bonds, verify EFTPS account
Employers using payroll service providers should check if their provider has a fiduciary bond in place to protect the employer against a possible provider default.
Most employers already use the Electronic Federal Tax Payment System (EFTPS) to make their federal tax deposits and business tax payments. Because these payments can easily be made either by phone or online, EFTPS offers an especially convenient option when a disaster may displace businesses and their employees. It’s also easy to track tax payments and receive email alerts through EFTPS. Any business that doesn’t have an EFTPS account can create one by visiting EFTPS.gov.