Tax News: Natural Disaster Preparation and Taxes
The Internal Revenue Service ("IRS") issued a reminder to taxpayers advising on the creation or maintaining of an emergency preparedness plan. A well-thought-out plan is a critical component for surviving natural disasters. Taxpayers, whether individuals, organizations or businesses, should take time now to create or update their emergency plans.
A solid plan includes securing and duplicating essential documents, creating lists of property and knowing where to find information once a disaster has occurred. Some useful suggestions to ensure your tax documents are secure are as follows:
- Secure key documents and make copies
- Taxpayers should place original documents such as tax returns, birth certificates, deeds, titles and insurance policies inside waterproof containers in a secure space. Duplicates of these documents should be kept with a trusted person outside the area of the taxpayer. Scanning them for backup storage on electronic media such as a flash drive is another option that provides security and portability.
- Document valuables and equipment
- Current photos or videos of a home or business’s contents can help support claims for insurance or tax benefits after a disaster. All property, especially expensive and high value items, should be recorded.
- Employers should check fiduciary bonds
- Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
- Rebuilding documents
- Reconstructing records after a disaster may be required for tax purposes, getting federal assistance or insurance reimbursement.
If you or a loved one has been impacted by a natural disaster,
Post a comment
Post a Comment to "Tax News: Natural Disaster Preparation and Taxes"To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."