PHOENIX, Ariz. – The Internal Revenue Service encourages individuals and businesses to safeguard their tax records against natural disasters by taking a few simple steps.
- Create a backup set of records electronically
Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set. Keeping a backup set of records –– including bank statements, tax returns and insurance policies –– is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned into an electronic format. With documents in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them to a disc.
- Document valuables
Another step a taxpayer can take to prepare for disaster is to photograph or videotape the contents of their home, especially items of higher value. The IRS has a disaster loss workbook, Publication 584, which can help taxpayers compile a room-by-room list of belongings.
A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area.
- Update emergency plans
Emergency plans should be reviewed annually. Personal and business situations change over time, as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.
- Check on fiduciary bonds
Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
The IRS is ready to help. If disaster strikes, an affected taxpayer can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues.
Backup copies of previously-filed tax returns and all attachments, including Form W-2, can be requested by filing Form 4506, Request for Copy of Tax Return. Alternatively, transcripts showing most line items on these returns can be ordered online, 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.
An IRS podcast on disaster assistance in both English and Spanish format is available as well as the IRS YouTube videos “Preparing for Disasters” and “How to Request a Copy of Your Tax Return,” are available in English, Spanish and American Sign Language format. All this and other social media items can be found online at IRS New Media.
Resources
- Tax Relief in Disaster Situations
- Frequently Asked Questions for Disaster Victims
- Publication 552, Recordkeeping for Individuals
- Publication 583, Starting a Business and Keeping Records
Submitted by: Internal Revenue Service
Email: [email protected]
