Extreme weather is here, with fall already here and winter coming up quickly. To keep your finances from being affected by the weather, the Internal Revenue Service (IRS) is reminding taxpayers to be ready for natural disasters that could make it impossible to file their taxes. During National Preparedness Month, this warning is even more important because both the Pacific and Atlantic storm seasons are still going on.
This might be the last thing you want to think about after a tragedy, but it is actually a very important step. That’s why the agency tells people to keep their important legal and financial documents safe and keep an up-to-date list of their assets, especially in case of a natural disaster.
When there is an emergency and a federal declaration is made, the IRS can give people more time to file their taxes and pay their bills. In fact, many of these extensions have been given out throughout 2024 because of bad weather like tornadoes, storms, and floods. With these federal declarations, the IRS can push back dates without people having to contact the agency. Instead, the delays happen automatically.
But just because you filed late doesn’t mean you can get back all the information you lost. That’s why the IRS said in a statement on September 3 how important it is to keep records in order, especially for people who might be affected by disasters.
“After a disaster, having up-to-date documents and other information on hand can make it easier for victims to get help from the IRS and other organizations.” People and businesses may be able to recover financially from the effects of a disaster with the help of disaster aid and emergency relief, especially if the federal government labels the area where they live a major disaster area.
The IRS’s advice
The IRS says that people should keep important papers like tax returns, Social Security cards, birth certificates, titles, deeds, and insurance policies in a safe place so that they are fully prepared. These should be kept in cases that are both waterproof and fireproof.
They also say that you should keep a copy of these papers with someone you trust who doesn’t live in the disaster-prone area, like a family member or close friend. This extra safety step gives you more peace of mind in case the originals get lost or damaged.
If you have paper documents, the IRS says to scan or photograph them and store them in a safe digital version. This makes sure that taxpayers will still be able to access digital copies of their important documents even if the hard copies are lost. This can be very helpful in emergency recovery situations.
Along with keeping documents safe, it is a good idea to keep a thorough inventory of all of your personal and business assets. The IRS says to keep records of your things by taking pictures or videos and writing thorough descriptions of each one.
For some items, taxpayers should list the brand, model, and, if available, the year they were bought. People who need to file an insurance claim or get tax benefits after a disaster will find this information very useful.
The IRS has made disaster loss workbooks available to help taxpayers with this process. These workbooks are meant to help taxpayers make lists of their personal or business things. You can use these records to back up both your insurance claims and your tax claims for losses caused by disasters.
People who are taxpayers are told to start putting together their records as soon as possible in case something bad happens and papers are lost or destroyed. In order to make sure they can pay their taxes and get government aid or insurance payments, this is a very important step.
The IRS wants people to remember that most banks offer online records and statements, which can be very helpful for people who have lost physical papers. Having these electronic copies of bank statements, loan papers, and other financial documents on hand can make it easier to put together new documents after a disaster.