Disasters donโt wait for tax season. Is your business prepared?
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May 2025
Natural disasters are becoming more frequent and unpredictable โ from floods to wildfires to severe storms. As of April, FEMA has issued 12 major disaster declarations across 9 states. For businesses and individuals alike, having a solid disaster plan isnโt just a precaution โ itโs a necessity. One of the most overlooked parts of that plan? Your financial and tax records.
Letโs break down what you need to do to protect your critical documents and data in the event disaster strikes.
๐ Keep Your Key Documents Safe
Your most important tax and identity documents should be:
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Stored in a locked, fireproof and waterproof container
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Backed up digitally (ideally in an encrypted cloud service or secure offsite location)
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Copied and kept separately โ with a trusted family member or in a bank safety deposit box
๐ Examples of essential documents include:
- Tax returns
- Social Security cards
- Wills and trusts
- Real estate deeds and mortgage papers
- Insurance policies
- Marriage/birth certificates
๐ Pro Tip: Use a secure USB drive or encrypted cloud folder to carry a digital backup with your emergency kit.
๐ผ๏ธ Documenting Your Property: A Must-Do
Donโt wait for loss to realize what you had. Businesses and homeowners should keep a current inventory of valuables and property, including:
๐ธ Photos or videos of furniture, equipment, artwork, and electronics
๐ Receipts or purchase records
๐ An inventory list organized by room or function
The IRS provides workbooks to help:
๐ Publication 584 โ for personal property
๐ Publication 584-B โ for business property
These can also support insurance claims and tax deductions for disaster losses.
๐ Rebuilding Records After a Disaster
Even with good planning, damage happens. Hereโs how to reconstruct key records after a disaster:
๐ Tax Returns
Use the IRSโs Get Transcript tool to retrieve free tax return transcripts. For full copies, file Form 4506.
๐ Fee Waiver Tip: If youโre in a FEMA-declared disaster zone, write the disaster name on your Form 4506 โ the IRS will waive the usual fee.
๐ Real Estate Documents
- Property tax records: County assessorโs office
- Deeds and mortgages: County recorder
- Inherited property: Check probate court records or the estate attorney
๐ Vehicle Valuations
Need to estimate the fair market value of a vehicle lost or damaged? Try:
๐งพ Recently bought a car? Call the dealer for a purchase contract copy.
๐ข Business Owners: Hereโs What You Need
Running a business? Youโll want to rebuild these records:
๐ฆ Inventory: Ask suppliers for invoices or use photos/video for proof
๐๏ธ Building plans: Get from your contractor or local planning office
๐งพ Bank statements: These show income and expenses
๐ผ Sales tax returns: Can verify gross receipts
๐ฅ Payroll records: Contact your payroll provider โ make sure theyโre bonded!
๐ฌ Tip: If you didnโt document your business setup, sketch a map of your layout โ where equipment, signage, and inventory were located.
๐ IRS Disaster Relief
If you’re in a federally-declared disaster area, you may be eligible for:
- ๐ Extended filing deadlines
- ๐ธ Deferred tax payments
- ๐ Waived penalties
๐ง The IRS usually identifies eligible taxpayers automatically, but you can call the IRS Disaster Hotline: 866-562-5227 for help.๐ Get updated relief info here: IRS Disaster Relief Page
๐ง Final Thoughts: Prepare Now, Not Later
Whether you’re a homeowner, a business owner, or both โ preparing your tax and financial records for disaster is as important as insurance coverage or emergency supplies. When you have your documentation in order, your recovery is faster, easier, and less stressful.
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Make backups
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Store safely
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Stay informed
ould reduce your state income tax exposure โ or trigger new compliance complexities, depending on how the courts rule.
๐ง Quick Fact:
โก๏ธ Over 60% of U.S. states are already applying MTC’s 2021 guidance informally, according to a Checkpoint Catalyst survey.
