Preparing for Natural Disasters

In response to peak hurricane season in the east and elevated wildfire risks in the west, the IRS officially designated September as National Preparedness Month. During this time, taxpayers across the nation are encouraged to develop emergency preparedness plans or if they already have such a plan in place, to update it for 2024. As a part of this process, taxpayers are encouraged to take steps to protect and make copies of important documents, as well as creating lists of their most valuable assets. Having this kind of updated documentation readily available after a natural disaster can make it a lot easier for taxpayers to apply for tax relief. Read on to learn more about some of the things you can do to prepare for natural disasters this year.

Protecting Important Documents 

When reviewing and updating their emergency preparedness plans, taxpayers should be sure to go over all of their most important documentation, placing original records in water and fireproof containers. This could include:

• Tax returns;
• Birth certificates;
• Social security cards;
• Titles and deeds; and
• Insurance policies.

Those who live in areas that are at high-risk for certain types of natural disasters, like hurricanes, may also want to consider asking a trusted relative or friend to keep duplicates of the most important records at a location somewhere far from the potential disaster area. It’s also a good idea to scan and save any paper documents into digital file formats and store those in a secure digital location, like the Cloud or a USB drive.

Documenting Your Valuables

 Another important part of tax-related natural disaster planning is to make a detailed inventory of one’s property and business interests. Taxpayers can take videos or photos on their phones of these assets, but should also be sure to create a written list with detailed descriptions about each item. In the event of a natural disaster, these kinds of records can be used to support a taxpayer’s insurance claim or request for benefits. For instance, special tax rules allow individuals and businesses who have been impacted by a natural disaster to deduct unreimbursed disaster losses on their tax returns, but only if they have proof of ownership.

Creating an EFTPS Account 

Taxpayers who own businesses in Florida, where hurricanes and tropical storms are common, should also consider signing up for the Electronic Federal Tax Payment System (EFTPS) to make their federal tax deposits and payments. This system can come in extremely handy when a disaster displaces a business or its employees and can also be used to track tax payments and receive email alerts.

Call The Law Offices of Ronald Cutler, P.A. Today

Nothing makes a person feel quite as powerless as a natural disaster. There are steps, however, that we can take to help protect ourselves in the event of a sudden storm, hurricane, or flood. As long-time residents of Daytona, we are well aware of the kind of physical, emotional, and financial toll that natural disasters have on our community. For help recovering financially after such an event, please call CPA, former FBI Special Agent, and experienced Florida tax & IRS attorney Ronald Cutler, P.A. at 386-490-9949 today.

Sources: 

Ready.gov/September

irs.gov/pub/irs-pdf/p584b.pdf