Forewarned is forearmed—so says the maxim. And in that spirit, the IRS has issued a reminder that hurricane season is not here yet, but it suggests that now is the time to prepare, and offers some suggestions regarding how to do that.
“Individuals, organizations and businesses should take time now to make or update their emergency plans,” cautions the IRS in its May 4 news release.
Documents
The IRS suggests securing key documents by placing original documents such as tax returns, birth certificates, deeds, titles and insurance policies inside waterproof containers in a secure space. It also suggests scanning documents for backup storage on electronic media such as a flash drive, as well as keeping duplicates of the documents with a trusted person outside the area where one is located. The IRS reminds that it may be necessary to reconstruct records for tax purposes.
Fiduciary Bonds
The IRS reminds that a fiduciary bond can protect an employer if a payroll service provider defaults. It suggests that employers should check fiduciary bonds, and ask payroll service providers if they have a fiduciary bond in place.
IRS Assistance
The IRS notes that after the Federal Emergency Management Administration (FEMA) issues a disaster declaration, it may postpone certain tax-filing and tax-payment deadlines for taxpayers who either live in or have a business in an area where a disaster has been declared. The IRS also notes that it automatically identifies taxpayers that are located in areas where a disaster has been declared and applies filing and payment relief.
The IRS says those affected by a disaster can receive answers from the IRS to tax-related questions by calling 866-562-5227. Additional information and tips are available from the following documents:
- Publication 2194, Disaster Resource Guide for Individuals and Businesses
- Publication 583, Starting a Business and Keeping Records
- FS-2017-11, Reconstructing Records After a Natural Disaster or Casualty Loss
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