So far, in 2023, the Federal Emergency Management Agency (FEMA) has declared disasters for mudslides, landslides, severe storms, tornadoes, and more. Disasters can have an immediate and lasting impact on individuals, organizations, and businesses. Year-round preparation is critically important, and observing the start of Hurricane Season provides a perfect opportunity for an annual readiness assessment.

Keep critical documents safe; make extra copies.

Place original documents such as tax returns, Social Security cards, birth certificates, and deeds inside a waterproof container in a safe space. Taxpayers are encouraged to make copies of these important documents and store them in a secondary location, such as a safe deposit box or with a trusted person who lives in a different area. In addition, store scanned documents on a flash drive for easy portability.

Create a record of valuables and equipment.

All property, especially high-value items, should be recorded. A simple list with current photos or videos may also help support claims for insurance or tax benefits after a disaster. The IRS disaster loss workbooks in Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) and Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook, can help individuals and businesses make lists of belongings or business equipment.

Reconstructing records.

Reconstructing or replacing records after a disaster may be required for tax purposes, claiming federal assistance, or insurance reimbursement. The more accurately the loss is estimated, the more loan and grant money will be available. Taxpayers who have lost some or all their records during a disaster should visit IRS's Reconstructing Records webpage as a first step.

Employers should check fiduciary bonds.

Employers using payroll service providers should check if the provider has a fiduciary bond in place that can protect the employer in the event of the payroll service provider default. The IRS reminds employers to choose their payroll service providers carefully.

IRS can provide tax relief after a disaster.

After FEMA issues a major disaster or an emergency measures declaration, the IRS may postpone particular tax filing and payment deadlines for taxpayers who reside or have a business in certain counties affected by the disaster. The IRS provides details on states and counties that have been issued relief on the IRS disaster relief page.

Taxpayers in the affected areas do not need to call to request this relief. The IRS automatically identifies taxpayers in the covered disaster area and applies for filing and payment relief. Those impacted by a disaster can contact the IRS at 866-562-5227 to ask their tax-related questions to an IRS specialist trained to handle disaster-related issues.

Taxpayers who do not reside or have a business in a covered disaster area but suffered impact from a disaster should call 866-562-5227 to find out if they qualify for disaster tax relief and discuss other options.

Additional Resources

• Publication 547, Casualties, Disasters, and TheftsPDF
• Publication 583, Starting a Business and Keeping Records
• Disasterassistance.gov
• Ready.gov 

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