The IRS is reminding all taxpayers to be careful in hurricane and wildfire season. To do this, they must create or revise their emergency preparedness plans to survive in the event of one of these natural disasters.
During the past year, the Federal Emergency Management Agency (FEMA) declared some areas of disaster following the passage of hurricanes, tropical storms, tornadoes, severe storms, floods, wildfires and earthquakes in various places. from the country. That is why individuals, organizations, and businesses need to take time now to update their emergency plans.
Protect important documents and make copies
Taxpayers must place original documents, such as tax returns, birth certificates, deeds, titles, and insurance policies inside waterproof containers in a safe space.
Copies of these documents must be delivered for their care to a trusted person outside the taxpayer’s area. Scanning them for backup storage on electronic media such as a flash drive is another option that provides security.
Document valuables and equipment
Current photos or videos of the contents of a home or business can help support claims for tax benefits or insurance after a disaster.
All goods, especially expensive and high-value items, must be registered. The IRS Disaster Loss Record in Publication 584 can help individuals and businesses compile lists of business belongings or equipment.
Employers must verify fiduciary bonds
Employers using payroll service providers should ask the provider if they have a fiduciary bond. The bond could protect the employer in the event of default by the payroll service provider.
Reconstruction of some files may be required after a disaster for tax purposes, obtaining federal assistance, or insurance reimbursement. Those who have lost some or all of their files during a disaster can visit the website IRS File Reconstruction as first steps.
IRS Supports After Disaster
After FEMA issues a disaster declaration, the IRS may postpone certain deadlines for filing and paying taxes for taxpayers who reside or have a business in the disaster area.
You do not need to call the IRS to request this support. The IRS automatically identifies taxpayers located in the disaster area and applies tax filing and payment support.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.