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:
- 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.
- 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.
- Employers who use a payroll service provider, should check if they have fiduciary bonds in place, which would protect the employer.
- 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.