The staff at Internal Tax Resolution encourages both individual taxpayers and businesses to take the necessary steps in safeguarding your tax records against natural disasters. With just a few simple steps taxpayers can protect themselves against unforeseeable events.
1. ) Create an Electronic Backup Set of Records:
Taxpayers should always keep a backup of their records in a safe place, stored away from the originals. An example of a backup should include: bank statements, tax returns, insurance policies, copies of investments, etc. Taxpayers will find that keeping a backup set of records is easier now that most financial institutions provide all information electronically and can be accessed via the internet.
2.) Document Valuables:
Taxpayers should take photographs or videos of the contents of their home, especially the items of higher value. The IRS has a disaster loss workbook, Publication 584, which can be found at www.IRS.gov. Documenting valuables in the home helps individuals prove the market value of items for insurance claims. Photos and videos should be stored with a relative or a friend who lives in a different area.
3.) Update Emergency Plans:
Emergency plans should be updated annually as both personal and business situations change.