Tax Tips – Are You Prepared for a Natural Disaster?

Natural disasters such as hurricanes, earthquakes, or fires can happen at
any time which is why it’s important to be prepared before disaster strikes.
Here are a few tips to help you prepare in case anything happens:
• Update your family’s emergency plans: Updating your emergency
plans can include knowing where to go, where all important
documents and possessions are located, and what you need to be
prepared for. Check up on the emergency plans for your home or
business frequently because things can change.
• Create digital copies of important documents: Most financial
organizations like banks and insurance companies provide digital
copies of bank statements, tax returns, and insurance policies
anyway, and having all these digital copies saved and organized is a
good practice to get into. If you only have paper copies of important
documents, scan them and save them to your computer in case you
can’t access them in an emergency.
• Document valuables: It’s a good idea to document valuables to
make it easier to claim insurance and tax benefits after a natural
disaster. A disaster loss workbook will help you compile a list of
belongings and photographs that can make this process even easier
for both the IRS and your insurance provider.
The best time to prepare for an emergency is always when you don’t need
to, not after the fact. These tips will help you have everything you need
ready in the case of a natural disaster or other emergencies.
* This information is not intended to be a substitute for specific
individualized tax advice. We suggest that you discuss your specific tax
issues with a qualified tax professional.

Tip adapted from IRS.gov9

9., September 23, 2020