With winter already in full swing and many parts of the country in potential disaster zones, the Internal Revenue Service (IRS) is sending out its annual reminder to taxpayers to prepare for natural disasters that could affect their tax filings and protect important documents.
It may seem silly to worry about taxes with the holidays approaching, and most documents can be obtained again if necessary, but given the ongoing Pacific and Atlantic hurricane seasons, as well as National Preparedness Month, it is a good idea to review your paperwork storage, digital or otherwise, and consider whether it is sufficiently safe.
The IRS can often postpone tax payment and filing deadlines in affected areas due to natural disasters. However, it’s important to consider other priorities when filing taxes.
This year, taxpayers have already received numerous extensions due to a variety of disasters, including storms, tornadoes, and flooding caused by extreme weather events, and 2025 will be no exception.
The extension is fairly automatic and guaranteed; however, as the IRS explains, taxes should not be the only concern. “Having updated documents and other information readily available following a disaster can assist victims in applying for relief from the IRS and other agencies.
Disaster assistance and emergency relief may assist taxpayers and businesses in recovering financially from the effects of a disaster, particularly if the federal government declares their location a major disaster area.
Safekeeping documents the IRS needs
The IRS encourages people to keep track of important documents such as birth certificates, Social Security cards, deeds, titles, insurance policies, and tax returns from the previous few years. To account for most incidentals, keep all of these in a secure location in waterproof and fireproof containers.
It’s also a good idea to leave copies of these with a relative, friend, or other trusted person in case the safe is damaged or unreachable in the aftermath of the disaster. It may appear to be overkill, but if you have suffered significant material losses, you will appreciate having access to the majority of those records.
Another suggestion is to scan or photograph all of your paper records and save them in a secure digital location so that they can be accessed if the originals are lost or destroyed.
If nothing works and all documents are lost, most deeds and personal documents should be available for public inspection at banks, public records offices, and other locations. The IRS may even have some saved from previous instances.
However, keep in mind that any local offices were most likely affected as well, so obtaining them may take some time. Furthermore, you will most likely not be the only person who needs to use these services, so they will be slower.
Keeping Inventory
This is something that everyone should do, regardless of where they live or what natural disasters they may face. Keeping a regular inventory of assets can help you avoid problems with insurance companies and the IRS.
This can be accomplished by taking photos or videos and writing detailed descriptions, including the year, make, and model numbers as applicable, particularly for specialty equipment that may be difficult to replace.
When it comes time to file insurance claims or tax benefits, these records can be used to support the claims and speed up the process; however, they must be up to date and detailed enough to withstand scrutiny.
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