As September brings peak hurricane season and heightened wildfire risks, the IRS urges taxpayers to create or update their emergency preparedness plans for 2024. National Preparedness Month is the perfect time to ensure you are equipped to handle potential disasters by safeguarding key documents, documenting your assets, and knowing how to access critical information in an emergency.

Start with a Preparedness Plan

Having a comprehensive preparedness plan is essential for both personal and business financial recovery after a disaster. It is important to protect and duplicate vital documents, make an inventory of property, and know where to find essential information when needed. These steps can streamline the process of applying for relief from the IRS and other agencies in the aftermath of a disaster.

If your area is declared a federal disaster zone, you may be eligible for assistance and relief from the IRS and other federal programs, which can help mitigate the financial impact of the disaster.

Safeguard Important Documents

To protect important records, taxpayers should store original documents in a water and fireproof container in a safe location. These may include:

• Tax returns
• Birth certificates
• Social Security cards
• Property deeds
• Insurance policies

Additionally, having a backup of these documents stored away from disaster-prone areas can be invaluable. A trusted family member or friend could help by keeping duplicate copies for you. For further security, consider scanning or photographing important documents and storing them digitally in a secure cloud or digital location, making them easily accessible and portable.

Keep an Updated Inventory of Valuables

Maintaining a detailed inventory of your personal and business assets can simplify the claims process for insurance or tax purposes if a disaster occurs. Take photos or videos of your property and be sure to include descriptions with details like make, model, and year for relevant items.

The IRS provides disaster loss workbooks that can help individuals and businesses organize lists of belongings or equipment, which can prove essential when submitting claims for relief.

How to Reconstruct Records After a Disaster

In the wake of a disaster, reconstructing financial records may be necessary for tax purposes or for qualifying for federal assistance or insurance reimbursement. Many financial institutions can provide digital versions of important statements and documents, which can expedite the reconstruction process.

The IRS offers guidance on reconstructing records after a disaster. For helpful tips, visit https://www.irs.gov/newsroom/reconstructing-records-after-a-natural-disaster-or-casualty-loss.

Employers: Review Fiduciary Bonds and EFTPS Accounts

Employers should ensure their fiduciary bonds are up to date and review their Electronic Federal Tax Payment System (EFTPS) accounts. The EFTPS allows for secure and convenient tax deposits and payments via phone or online, which is especially useful in times of displacement due to disaster. Businesses can also track their payments and sign up for email alerts through the EFTPS system. Any business without an EFTPS account can create one at https://www.eftps.gov/.

IRS Disaster Relief is Available

After a federal disaster is declared, the IRS may extend tax filing and payment deadlines or offer other relief. To see if your area qualifies, visit the Tax Relief in Disaster Situations page on the IRS website. The IRS will automatically apply relief to taxpayers in designated disaster areas, so there is no need to contact them if your IRS address of record is in an affected location.

Taxpayers living outside a declared disaster area, such as those assisting with relief efforts or whose essential records are in the disaster zone, may also qualify for relief. Eligible individuals and businesses can request relief by calling the IRS Disaster Hotline at 866-562-5227.