The Internal Revenue Service today encouraged taxpayers to protect important tax and financial records before disaster strikes.
As part of National Preparedness Month, the IRS reminds individuals, businesses, and tax professionals to make or update emergency plans, safeguard key documents, and know where to find IRS disaster relief resources. Taking a few steps now can make it easier to recover, apply for assistance, file insurance claims, or claim disaster-related tax benefits.
“Preparing now can make a real difference when a disaster strikes,” said IRS Chief Executive Officer Frank J. Bisignano. “All taxpayers, even those in areas not prone to disaster, should take precautionary steps outlined in IRS resources to plan for the loss of valuable property and to ensure important financial records are protected.”
Disasters can happen quickly and with little warning. Floods, wildfires, hurricanes, tornadoes, severe storms, and other emergencies can damage homes, businesses, and records needed for tax, insurance, and federal assistance purposes.
Taxpayers can prepare by taking these steps:
- Keep key documents safe. Taxpayers should keep tax returns, birth certificates, Social Security cards, insurance policies, property titles, and other important records in waterproof and fireproof containers.
- Create electronic copies. Taxpayers should consider scanning papers records and saving electronic copies on a secure device or in the cloud. Many financial institutions also provide statements electronically.
- Document valuable property. Photos or videos of homes, businesses, vehicles, and other properties can help support claims of losses of property for tax purposes, as well as insurance claims after a disaster. IRS disaster loss workbooks can help individuals and businesses compile a room-by-room list of belongings and equipment.
- Review emergency plans. Taxpayers should review and update emergency plans each year. Ready.gov has resources and checklist to help individuals and businesses prepare.
- Know how to access tax records. Taxpayers can use IRS Individual Online Account to access tax information, including transcripts, notices, and other records. Taxpayers who need copies of previously filed returns or transcripts after a disaster can also use Get Your Tax Records and Transcripts on IRS.gov.
Businesses should also review payroll protections. Employers who use a payroll service provider should ask whether the provider has a fiduciary bond. Eligible business taxpayers can use Business Tax Account to view balances, make payments, and view payment history. Registered Electronic Federal Tax Payment System users can continue to use EFTPS for federal tax payments.
IRS disaster tax relief may be available
When the IRS grants disaster tax relief, certain tax filing and payment deadlines that fall within the postponement period are postponed until the relief deadline. Specific relief varies by disaster, and taxpayers should review the applicable IRS disaster announcement for deadlines, returns, payments, and other actions covered.
In many cases, disaster tax relief is automatic for taxpayers whose IRS address of record is located in a covered disaster area. These taxpayers generally do not need to contact the IRS to receive relief.
Taxpayers who live outside a covered disaster area, but whose records are necessary to meet a deadline located in the affected area, will need to call the IRS Special Services Hotline at 866-562-5227 to request relief and tax practitioners should review bulk requests from practitioners for disaster relief.
Individuals and businesses that sustain uninsured or unreimbursed disaster-related losses may be eligible to claim those losses on a federal tax return, subject to applicable tax law requirements. Taxpayers should review Publication 547, Casualties, Disasters, and Thefts, for more information about casualty losses and disaster-related tax rules.
You can reconstruct your records using multiple methods. The IRS recommends downloading previous bank or credit card statements, contacting your lender for home closing records, or taking current photos of the damage. To establish pre-disaster value, you can use historical photos, local tax assessment records, or previous appraisal documents. You can also complete Publication 584 (Casualty, Disaster, and Theft Loss Workbook) to build a room-by-room inventory.
You can access free tax transcripts immediately by logging into your IRS Individual Online Account or using the “Get Transcript” tool on IRS.gov. If you require a full copy of a previously filed tax return (including Form W-2), you can submit Form 4506. Fees for tax return copies are typically waived for disaster victims calling the IRS Special Services Hotline at 866-562-5227.
No. Relief is granted automatically to taxpayers whose official address on file with the IRS falls within a federally or designated state-declared disaster zone. Filing and payment deadlines falling within the disaster period are extended automatically without needing to call or submit forms.
You still qualify for deadline postponements, but it will not happen automatically. You must call the IRS Special Services Hotline at 866-562-5227 to explain that your necessary tax records or preparer are in a covered disaster area, and provide the official FEMA disaster identification number to manually apply the relief.
Uninsured or unreimbursed casualty losses from a declared disaster can be claimed on your tax return. Crucially, you have the option to claim the loss on the tax return for the prior tax year by filing an amended return. This allows you to claim a refund sooner from taxes you already paid, providing faster cash flow for recovery efforts.
Manoj Sharma is a Senior Writer on the banking team at Tax Assistant. He provides information on budgeting, bank accounts, the banking industry, and other related topics. Using original data and methodologies, he helps you identify the best financial institutions, accounts, and products tailored to your needs. Manoj holds a degree in Journalism and Political Science from Syracuse University. All articles are strictly reviewed and fact-checked by our panel of expert Chartered Accountants, including CA Devendra Saini, CA Nikhil Khunteta, and CA Ankit Goyal
