How to Prepare Before a Disaster Strikes

A home disaster can be stressful enough without reconstructing important
records and accounting for belongings. The Internal Revenue Service encourages
taxpayers to safeguard their financial and tax records before disaster strikes.
Listed below are four simple tips for individuals on preparing for a disaster.

  1. Recordkeeping Take advantage of
    paperless recordkeeping for financial and tax records. Many people receive
    bank statements and documents electronically and important documents like
    W-2s and tax returns can be scanned into an electronic format and stored
    on a flash drive or CD in a safe place. Keep it with other essential
    documents like home-closing statements, vehicle titles, insurance records
    and birth, death or marriage certificates and legal paperwork. Some online
    services can automatically back up computer files and store them offsite.
    Regardless of how you save your documents (whether it is electronically or
    on paper) ensure they are safe from the elements, but also encrypted
    and/or locked up to guard against disclosure or theft.
  2. Document Valuables The IRS has disaster
    loss workbooks for individuals that can help you compile a room-by-room
    list of your belongings. One option is to photograph or videotape the
    contents of your home, especially items of greater value. You should store
    the photos or video in a safe place away from the geographic area at risk.
    This will help you recall and prove the market value of items for insurance
    and casualty loss claims in the event of a disaster.
  3. Update Emergency Plans Make sure you have a
    means of receiving severe weather information; if you have a NOAA Weather
    Radio, put fresh batteries in it. Make sure you know what you should do if
    threatening weather approaches or if a fire occurs.  Review your
    emergency plans annually.
  4. Count on the IRS In the event of a
    disaster, the IRS stands ready to help. The IRS has valuable information
    you can request if your records are destroyed. If you have been affected
    by a federally declared disaster, you can receive copies or transcripts of
    previously filed tax returns free of charge by submitting Form 4506,
    Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of
    Tax Return.  Clearly indicate the official name of the disaster in
    red at the top of the form, to expedite processing and waive the usual fee
    for tax return copies.
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