The Internal Revenue Service (IRS) has urged taxpayers to prepare for natural disasters that could affect their tax returns.
As part of National Preparedness Month and the ongoing hurricane season in the Pacific and Atlantic, the IRS is urging taxpayers to securely store copies of important documents and keep up-to-date asset inventories in case of a natural disaster.
When a federal disaster is declared, the IRS has the authority to delay the deadlines for paying and filing taxes in the applicable areas. Taxpayers have been granted numerous extensions so far in 2024 due to a number of disasters, including storms, tornadoes, and flooding caused by extreme weather events.
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If you live in an area affected by a federal disaster declaration, the IRS will automatically postpone the deadlines and taxpayers will not need to contact the government agency.
“After a disaster, having current documents and other information on hand can help victims apply for assistance from the IRS and other agencies,” the federal agency said in a Sept. 3 press release.
“Disaster relief and emergency assistance can help taxpayers and businesses recover financially from the effects of a disaster, especially if the federal government declares their location a major disaster area.”
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Storage of documents
Tax returns, birth certificates, Social Security cards, deeds, property titles, insurance policies and other important documents should be stored in a safe place in waterproof and fireproof containers. The IRS also recommends that a relative, friend or other trusted person keep copies of these documents in a location away from potential disaster areas.
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For paper documents, the IRS recommends scanning or photographing them into a digital file format and storing them in a secure digital location so they can be accessed if the original documents are lost or destroyed.
Inventory management
Taxpayers should keep a thorough inventory of the contents of your property and business. Taxpayers can document their possessions by taking photos or videos and writing detailed descriptions, including the year, make and model numbers, if applicable.
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The IRS Disaster Loss Workbooks can be helpful in compiling lists of personal possessions or business equipment that can help support insurance claims or tax benefits in the event of a disaster.
Reconstruct data sets
In the event that you are affected by a disaster, taking stock of your records is critical to filing and paying your taxes and receiving government assistance and insurance payouts.
The IRS reminds taxpayers that most financial institutions offer statements and records online, which can be helpful if physical document copies are lost.
