A few simple steps can help you keep your financial and tax records safe this hurricane season and potentially save you a big headache when it comes to filing your tax return next year.
Paperless Recordkeeping
Many people now receive bank statements and documents by e-mail or over the Web. Paper records such as W-2s, tax returns and other documents can be scanned and saved electronically.
With documents in electronic form, taxpayers can copy them onto a USB drive as a backup, which can be sent to a relative in another city for safe-keeping in case the taxpayer’s computer and paper files are destroyed.
Other options include copying files onto a CD or DVD. Many retail stores also sell computer software packages that can be used for recordkeeping.
Documenting Valuables
Another way you can prepare for disaster is to photograph or videotape the contents of your home, especially items of greater value. The IRS has a disaster loss workbook, Publication 584, which can help you compile a room-by-room list of belongings.
This can help you 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.
Check on Fiduciary Bonds
Employers who use payroll service providers should ask the provider if they have a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
Update Emergency Plans
Review your emergency plan annually. Personal and business situations change over time as do preparedness needs. Individual taxpayers should make sure they are saving documents such as W-2s, home closing statements and insurance records. 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.
IRS Is Ready to Help
When disaster strikes, the IRS stands ready to help with valuable information that you can request if your tax records are destroyed.
Immediately after a casualty, you can request a copy of your return and all attachments (including Form W-2) by using Form 4506, Request for Copy of Tax Return.
An information return or transcript can be ordered by calling 1-800-829-1040 or using Form 4506-T, Request for Transcript of Tax Return. There is no fee for a transcript. Transcripts are available for the current year and returns processed in the three prior years.
This Web site, IRS.gov, is also an indispensable source of information. The following pages and publications contain information that can help you be prepared when disaster strikes:
For Recent Grants of Relief, see Tax Relief in Disaster Situations
Reconstructing Your Records
Publication 552, Recordingkeeping for Individuals
Publication 583, Starting a Business and Keeping Records
Paperless Recordkeeping
Many people now receive bank statements and documents by e-mail or over the Web. Paper records such as W-2s, tax returns and other documents can be scanned and saved electronically.
With documents in electronic form, taxpayers can copy them onto a USB drive as a backup, which can be sent to a relative in another city for safe-keeping in case the taxpayer’s computer and paper files are destroyed.
Other options include copying files onto a CD or DVD. Many retail stores also sell computer software packages that can be used for recordkeeping.
Documenting Valuables
Another way you can prepare for disaster is to photograph or videotape the contents of your home, especially items of greater value. The IRS has a disaster loss workbook, Publication 584, which can help you compile a room-by-room list of belongings.
This can help you 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.
Check on Fiduciary Bonds
Employers who use payroll service providers should ask the provider if they have a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
Update Emergency Plans
Review your emergency plan annually. Personal and business situations change over time as do preparedness needs. Individual taxpayers should make sure they are saving documents such as W-2s, home closing statements and insurance records. 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.
IRS Is Ready to Help
When disaster strikes, the IRS stands ready to help with valuable information that you can request if your tax records are destroyed.
Immediately after a casualty, you can request a copy of your return and all attachments (including Form W-2) by using Form 4506, Request for Copy of Tax Return.
An information return or transcript can be ordered by calling 1-800-829-1040 or using Form 4506-T, Request for Transcript of Tax Return. There is no fee for a transcript. Transcripts are available for the current year and returns processed in the three prior years.
This Web site, IRS.gov, is also an indispensable source of information. The following pages and publications contain information that can help you be prepared when disaster strikes:
For Recent Grants of Relief, see Tax Relief in Disaster Situations
Reconstructing Your Records
Publication 552, Recordingkeeping for Individuals
Publication 583, Starting a Business and Keeping Records
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