Keeping Your Tax Records Safe During a Disaster

August 13, 2023

Want to keep your tax records safe during natural disasters? Read on for tips!

Create a Backup set of Records

Get back up copies of important documents like bank statements, tax returns, and insurance policies. Thanks to technology, many financial institutions offer electronic statements, so you can store them digitally. Save them on an external hard drive, thumb drive, or burn them to a CD/DVD.  

 

Inventory Your Valuables

Take photos or videos of your belongings in your home and buisness, especially the valuable items.The IRS has a workbook called Disaster Loss to help you make a detailed list of your belongings. Make sure to store those pictures with a trusted friend or family member who lives outside the area.

 

Update Emergency Plans for Personal and Business Situations

You should review emergency plans annually. Personal and business situations change over time as do preparedness needs.

 

For business owners, remember to revise your plans whenever you bring in new employees or make changes to your business. Make sure your employees are aware of these updates too.

 

If you rely on payroll service providers, consider asking them about having a fiduciary bond in case of any unexpected issues. This bond could offer you protection if the payroll service provider faces difficulties or defaults.

 

The IRS is Ready to Help

In case of a disaster, don't hesitate to reach out to the IRS at 1-866-562-5227. They have specialists who are trained to assist with disaster-related matters.

If you need copies of your past tax returns and all the attachments, such as Forms W-2 (Wage and Tax Statement), you can request them through Form 4506,  "Request for Copy of Tax Return." Alternatively, you have the option to obtain transcripts online, call 1-800-908-9946, or use either Form 4506T-EZ (Short Form Request for Individual Tax Return Transcript) or Form 4506-T (Request for Transcript of Tax Return) to get transcripts that show most of the details from those returns.

Sources: Image by Kelly Sikkema