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

John iekel

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 https://www.irs.gov/individuals/get-transcript on IRS.gov. 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. 

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 https://www.irs.gov/forms-pubs/about-publication-547 
• Publication 584, Casualty, Disaster, and Theft Loss Workbook https://www.irs.gov/forms-pubs/about-publication-584 
• Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook https://www.irs.gov/forms-pubs/about-publication-584-b