IRS recommends safeguarding information in case of natural disasters

WASHINGTON — The Internal Revenue Service reminds taxpayers that May kicks off the season of disaster preparation with National Wildfire Awareness Month and National Hurricane Preparedness Week, May 5-11.

Disasters can have an immediate and lasting impact on individuals, organizations and businesses. Year-round preparation is critically important, and observing Hurricane Preparedness Week and Wildfire Awareness Month provides a perfect opportunity for an annual assessment of readiness. So far in 2024, the Federal Emergency Management Agency (FEMA) has issued 25 major disaster declarations in 15 states impacted by winter storms, flooding, tornadoes, wildfires, landslides and mudslides.

Protect and make copies of important documents

Original documents such as tax returns, Social Security cards, marriage certificates, birth certificates and land ownership documents need to be secured in a waterproof container in a safe space. Taxpayers are encouraged to also make copies of these important documents and store them in a secondary location such as a safe deposit box or with a trusted person who lives in a different area. In addition, scanned documents can be stored on a flash drive for easy portability.

Keep a record of valuables

In this era of cell phone technology, it is highly recommended for taxpayers to use such devices to record high-value items. A simple list with current photos or videos may also help support claims for insurance or tax benefits after a disaster. The IRS disaster loss workbooks in Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) and Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook can help individuals and businesses make lists of belongings or business equipment.

Reconstructing or replacing records after a disaster may be required for tax purposes, claiming federal assistance or insurance reimbursement. The more accurately the loss is estimated, the more loan and grant money there may be available. Taxpayers who have lost some or all their records during a disaster should visit IRS’s Reconstructing Records After a Natural Disaster or Casualty Loss webpage as a first step.