IRS Tips to protect your person information during natural disasters
The Internal Revenue Service (IRS) is providing guidance to individuals in safeguarding their financial and tax-related information during natural disasters. As part of a comprehensive emergency preparedness strategy, it is crucial to protect vital documents and data. This reminder comes in conjunction with National Hurricane Preparedness Week and National Wildfire Awareness month, emphasizing the importance of being prepared.
Throughout the year, various calamities such as mudslides, landslides, severe storms, and tornadoes have prompted the Federal Emergency Management Agency (FEMA) to declare emergencies. These events can have both immediate and long-lasting consequences for individuals, businesses, and organizations. Thus, preparedness should be a year-round commitment. Taking advantage of Hurricane Preparedness Week and Wildfire Awareness month allows for an annual assessment of readiness.
To ensure a comprehensive preparedness plan, taxpayers can follow these recommendations to safeguard their personal financial and tax-related information. Additionally, taxpayers are encouraged to visit Ready.gov and IRS.gov for additional resources and information related to disaster preparedness.
Safeguarding Key Documents:
Original documents, including tax returns, Social Security cards, birth certificates, and property deeds, should be stored in a waterproof container in a secure location. It is also advisable to create duplicates of these essential documents and store them in a secondary location, such as a safe deposit box or with a trusted individual residing in a different area. Additionally, scanning the documents and saving them on a flash drive facilitates easy portability.
Creating a Record of Valuables and Equipment:
It is important to maintain a comprehensive record of all possessions, especially high-value items. This record can be a simple list accompanied by current photographs or videos, which can serve as evidence when making insurance claims or seeking tax benefits following a disaster. The IRS provides disaster loss workbooks (Publication 584 for personal-use property and Publication 584-B for business property) to assist individuals and businesses in compiling lists of belongings and equipment.
Reconstructing Records:
In the aftermath of a disaster, it may be necessary to reconstruct or replace lost records for tax purposes, federal assistance claims, or insurance reimbursement. The accuracy of estimating the loss plays a significant role in determining the available loan and grant funds. Taxpayers who have experienced record loss during a disaster should begin the process by visiting the IRS’s dedicated “Reconstructing Records” webpage.
Verifying Fiduciary Bonds for Employers:
Employers utilizing payroll service providers should verify whether the provider has a fiduciary bond in place. This bond serves as protection for the employer in the event of default by the payroll service provider. The IRS reminds employers to exercise caution and choose their payroll service providers wisely.
Tax Relief from the IRS:
Once FEMA issues a major disaster declaration or an emergency measures declaration, the IRS may grant certain tax filing and payment deadline extensions to affected taxpayers residing or conducting business in specified disaster-impacted counties. Information regarding states and counties eligible for relief can be found on the IRS disaster relief page. Taxpayers in these areas are not required to call the IRS to request relief, as the agency automatically identifies and applies the necessary filing and payment extensions to those located in the covered disaster zone. For assistance related to tax matters during disasters, individuals can contact the IRS at 866-562-5227 to speak with a specialist trained in handling such issues.
Disaster Tax Relief for Affected Individuals:
Taxpayers who have been affected by a disaster but do not reside or have a business in a covered disaster area can also explore the possibility of qualifying for disaster tax relief. They can call 866-562-5227 to inquire about eligibility and discuss the available options with an IRS representative.
In conclusion, by following these guidelines, individuals can enhance their preparedness and protect their financial and tax.