In 2021 and 2022, Americans experienced a number of natural disasters, including wildfires in California, New Mexico, and Colorado; the deadly Hurricane Ida impacting Louisiana, New Jersey, and New York; and severe storms throughout Washington and Tennessee.

Natural disasters strike often without ample warning; therefore, it is imperative that taxpayers have a plan to recover important documents in order to apply for insurance proceeds and tax relief.

Prepare for an emergency by doing the following:

  1. Secure tax returns, birth certificates, deeds, titles, and insurance policies in a waterproof or fireproof storage. Make copies to be kept with a person outside your area. Scan them into an electronic file.
  2. Document (photos or videos) high value items and equipment to submit for claim insurance. You can also use Publication 584 to create a list of items and equipment and its related cost, fair market value and insurance reimbursement to assist with your tax return.
  3. Employers who use a payroll service provider, should check if they have fiduciary bonds in place, which would protect the employer.
  4. In certain cases, some completely lost documents can be retrieved. For assistance, please see the IRS page on Reconstructing Records.

Tax relief may include postponing tax-filing and/or tax-payment deadlines, and the IRS will automatically identify qualified taxpayers based on their residence. Should you be impacted in a natural disaster with tax related questions, you can speak with an IRS disaster related specialist at 866-562-5227 or contact us.

 

Dana R. Borys, an Accountancy Corporation is a boutique tax consulting, compliance, and representation firm working with affluent individuals and owners/officers/founders of start-up/emerging growth companies. Building connections beyond the code.