General
Simple steps can make recovery easier for families and businesses
Natural disasters and other emergencies can disrupt daily life without warning. Although tax records may not be the first thing on your mind during an emergency, protecting them ahead of time can make the recovery process easier.
Tax returns, bank statements, insurance policies, property records, and other financial documents may be needed to support an insurance claim, document a loss, apply for assistance, or address a tax matter. For business owners, accessible records may also help restore operations, communicate with financial institutions, and meet tax and payroll responsibilities.
The IRS recommends including financial and tax records in both household and business emergency plans. Here are several practical steps you can take now.
Review your emergency plan every year
Your circumstances can change. You may move, purchase property, replace equipment, open a business, hire employees, or begin using different financial accounts.
Review your emergency plan at least once a year. Make sure it reflects your current household, property, accounts, insurance coverage, and business operations. Ready.gov also offers planning resources and checklists that can help households and businesses prepare.
Protect important original documents
Gather the documents that could be difficult to replace, including tax returns, identification records, insurance policies, property titles, and other important financial information.
Keep original documents and portable storage devices in a secure location. A waterproof, fire-resistant container may help protect paper records kept at home or at a business. The IRS also suggests considering copies stored with a trusted person outside your immediate area.
Create electronic backups
Paper records can be damaged or lost. Scan or photograph important documents and save electronic copies on a USB drive, external drive, or reputable cloud-storage service. Many banks, credit-card companies, insurance providers, and other financial institutions also provide electronic statements.
Do not keep your only backup beside the original paperwork. If both copies are in the same location, one event could damage them together. Periodically confirm that your electronic files are complete, accessible, and stored safely.
Taxpayers may also benefit from creating an IRS Individual Online Account, which provides access to transcripts, notices, and other federal tax information.
Make an inventory of your property
Photograph or record video of the contents of your home or business before an emergency occurs. Include valuable personal belongings, furniture, electronics, tools, machinery, inventory, and other business equipment when applicable.
A room-by-room or area-by-area inventory may help support insurance and tax-related claims after a disaster. The IRS provides disaster-loss workbooks for individuals and businesses to help organize this information.
Store the inventory separately from the property it documents. Include purchase records, model information, and other details when they are available, but do not delay creating an inventory simply because every receipt cannot be located.
Know where to look for assistance
The IRS publishes disaster-relief information for individuals and businesses. When the federal government declares a disaster, affected taxpayers may receive postponed filing or payment deadlines. The specific relief depends on the location, declaration, tax obligation, and IRS announcement.
Taxpayers who lose records may be able to retrieve tax-return transcripts through their IRS online account, request transcripts by mail, or obtain information from banks and other institutions. The IRS also provides guidance for reconstructing personal, business, and property records.
Preparation cannot prevent an emergency, but it can reduce the administrative burden that follows one. Set aside time to review, organize, protect, and securely back up your important tax and financial records. Families and business owners should also confirm that trusted household members or responsible employees know how to access the records if necessary.
Individual circumstances vary, and disaster-related tax rules can be complex. Consult a qualified tax professional when you need guidance about your records, available relief, filing deadlines, or a potential disaster loss.