The Internal Revenue Service (IRS) has issued an important reminder for taxpayers to get ready for potential natural disasters that could disrupt the filing of their tax returns.
In observance of National Preparedness Month and in light of the constant Pacific and Atlantic hurricane seasons, the IRS advises taxpayers to take proactive steps. Ensuring you have copies of essential documents stored safely and maintaining up-to-date inventories of your assets can prove invaluable in the event of a disaster.
IRS filing extensions
Once a federal disaster declaration is issued, the IRS has the power to extend tax payment and filing deadlines for affected areas. In 2024 alone, numerous extensions have been granted due to a variety of disasters, including tornadoes, storms, and flooding caused by extreme weather conditions.
- Federal disaster declarations enable the IRS to postpone deadlines without taxpayer intervention.
- Taxpayers do not need to contact the IRS if their area is affected by a federal disaster declaration.
If you reside in an area impacted by a federal disaster declaration (announced by FEMA), rest assured that the IRS will automatically postpone relevant deadlines. This means you won’t need to reach out to the agency for extensions.
In the aftermath of a disaster, having updated documents and other essential information readily available can significantly aid victims in applying for relief from the IRS and other agencies. As highlighted in a recent release by the federal government agency on September 3, being prepared can make all the difference.
Disaster Assistance and Emergency Relief
Disaster assistance and emergency relief can be a financial lifeline for taxpayers and businesses recovering from the impact of a disaster. When the federal government declares a location to be a major disaster area, various forms of support become available to help those affected get back on their feet.
Safekeeping Documents
It is crucial to keep important documents such as tax returns, birth certificates, Social Security cards, deeds, titles, and insurance policies in a safe place. The IRS recommends using waterproof and fireproof containers for storage. Additionally, it is wise to have a relative, friend, or another trusted individual keep duplicate copies of these documents at a location outside of any potential disaster area.
- Waterproof and fireproof containers: Use these to store essential documents securely.
- Duplicate copies: Ensure a trusted person keeps additional copies in a safe location away from disaster-prone areas.
Preparation and proper document management can make a world of difference when facing the unexpected. Stay safe and be proactive in safeguarding your essential information.
Digitizing Paper Documents
The IRS recommends scanning or photographing your paper documents and saving them as digital files. This ensures they are stored in a secure digital location, making them easily accessible if the original documents are ever lost or destroyed.
Keeping Inventory
It’s crucial for taxpayers to maintain a detailed inventory of their property’s and business’s contents. You can document your possessions by taking photos or videos and writing detailed descriptions. Be sure to include specifics such as the year, make, and model numbers where applicable.
Utilizing IRS Disaster Loss Workbooks
The IRS provides disaster loss workbooks to help you compile comprehensive lists of personal belongings or business equipment. These workbooks are invaluable in supporting insurance claims or obtaining tax benefits if you are impacted by a disaster.