Wildfires, floods, hurricanes, and earthquakes all strike without warning across the country. In minutes, years’ worth of financial paperwork and documents can be destroyed.
The IRS urges taxpayers to take proactive steps to protect their tax documents in these moments.
Luckily, there are IRS-recommended steps to safeguard your sensitive records before a natural disaster strikes.
Below is what you know about IRS document protection to stay prepared and safeguard your tax records.
Your tax records and IRS documents contain crucial information like:
If these documents are lost or damaged, it can delay insurance claims and impact your ability to file or amend returns. This creates complications during audits.
Pro Tip: The IRS expects you to be prepared for natural disasters. Even if you are unable to produce documentation after a natural disaster, it doesn’t excuse noncompliance. However, there are exemptions and disaster-based extensions.
The IRS’s natural disaster recommendations can be simplified into these four key steps to help taxpayers protect their documents:
Digital copies uploaded to cloud storage are easier to access remotely. This is extremely helpful in the event you have to evacuate or relocate on short notice.
If you prefer to keep paper and hard copies, please use:
Pro Tip: Clearly label digital and paper folders by year or category (e.g., "2024 Business Expenses") for easy access.
The IRS recommends keeping a photo or video inventory of personal and business assets. This is especially helpful in the event of natural disasters for:
Pro Tip: Use your phone to record walk-throughs of each room and keep backup copies on cloud storage.
If a natural disaster does, unfortunately, affect your home or office, the IRS offers support:
Bonus Tip: Notify the IRS of a new address using Form 8822 if you’ve been displaced or moved.
These tips apply to all taxpayers nationwide, regardless of their location. Natural disasters can impact everyone, so it is best to safeguard tax records no matter where you live.
However, certain areas are more prone to natural disasters:
If your IRS documents and records are already lost due to a natural disaster in your area, take the following steps:
Natural disasters are unpredictable and terrible experiences, so the least you can do is come prepared with a plan of action.
The IRS recommends protecting and safeguarding your tax records as part of your disaster preparation to minimize the time, stress, and financial impact.
If you need help with digitizing records or have questions about IRS disaster relief, Tax Attorneys of America are here to help.
Contact us for disaster prep support and other tax help.