Prepare For Hurricanes, Others Disasters By Safeguarding Tax Information
By: Stephen Crews
Updated: June 11, 2012
With the early start of this year's hurricane season, the Internal Revenue Service encourages individuals and businesses
to safeguard themselves against natural disasters by taking a few simple steps.
Create a Backup Set of Records Electronically
Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set.
Keeping
a backup set of records -- including, for example, bank statements, tax
returns, insurance policies, etc. -- is easier
now that many financial institutions provide statements and documents
electronically, and much financial information is available on the
Internet. Even if the original records are provided only on paper, they
can be scanned into an electronic format. With documents
in electronic form, taxpayers can download them to a backup storage
device, like an external hard drive, or burn them to a CD or DVD.
Document Valuables
Another
step a taxpayer can take to prepare for disaster is to photograph or
videotape the contents of his or her home, especially
items of higher value. The IRS has a disaster loss workbook, Publication
584, which can help taxpayers compile a room-by-room list of belongings.
A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. Photos
should be stored with a friend or family member who lives outside the area.
Update Emergency Plans
Emergency
plans should be reviewed annually. Personal and business situations
change over time as do preparedness needs. When
employers hire new employees or when a company or organization changes
functions, plans should be updated accordingly and employees should be
informed of the changes.
Check on 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.
IRS Ready to Help
If
disaster strikes, an affected taxpayer can call 1-866-562-5227 to speak
with an IRS specialist trained to handle disaster-related
issues.
Back copies of previously-filed tax returns and all attachments, including Forms W-2, can be requested by filing Form
4506, Request for Copy of Tax Return. Alternatively, transcripts showing most line items on these returns can be ordered
on-line, by calling 1-800-908-9946 or by using Form
4506T-EZ, Short Form Request for Individual Tax Return Transcript or Form
4506-T, Request for Transcript of Tax Return.
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