Prepare to Keep Vital Records Safe in a Disaster, IRS Reminds

Taking action in advance to protect vital documents can be helpful when a disaster strikes, a principle that applies to retirement plans and administration as well as other records and functions. 

The IRS issued a reminder in Tax Tip 2023-107 about the importance of such steps on the heels of Hurricane Idalia’s travels through Florida and other parts of the southeast. 

The IRS reminds that: 

• Federal tax return transcripts are available through the Get Transcript portal. They also are available by calling 800-908-9946 and following the prompts. 
• People who use a tax professional to file taxes should keep their contact information in a safe place.
• Financial statements are usually available online. 
• Many property records are available online from tax assessors or other government agencies. 

Additional Tips

The IRS also has provided additional suggestions that can help in preparing for an impending natural disaster: 

Take Advantage of Paperless Recordkeeping for Financial and Tax Records

• Scan important tax records such as W-2s, tax returns and other paper documents onto an electronic format.
• Back up electronic files and store them in a safe place. 
• Make duplicates of files and documents and keep them in a separate.
• Copy files onto a CD or DVD. 
• When choosing a place to keep your important records, one should remember that a disaster that strikes one’s home is also likely to affect other facilities nearby, making quick retrieval of records difficult and maybe even impossible.

Check on Fiduciary Bonds

• Employers that contract with payroll service providers should ask them if they have a fiduciary bond in place. 

Continuity of Operations Planning 

• Develop an emergency plan, and review existing plans.
• Back up your computer data systems regularly.
• Decide how you will communicate with employees, customers and others.
• Use cell phones, walkie-talkies, or other devices that do not rely on electricity as a backup to your telecommunications system.
• Collect and assemble a disaster supplies kit. Include a portable generator.
• Identify the community warning systems and evacuation routes.

Finding Out More

The IRS provides a variety of resources related to disaster preparedness including the following:

• Publication 547, Casualties, Disasters, and Thefts  
• Publication 584, Casualty, Disaster, and Theft Loss Workbook  
• Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook