It is always a good idea to have
a plan for what to do if and when disaster strikes. A disaster recovery plan is
especially important when it comes to keeping your tax and financial records
safe. The Internal Revenue Service provides taxpayers with some basic steps to
take now to be prepared in case of emergency:
1.
Backup
Records Electronically. Ask for your bank statements to be emailed rather
than mailed, and scan tax records and insurance policies into an electronic
format. Always remember to backup these files and keep them in a safe place.
2.
Document
Your Valuables. Take photos or videos of the contents of your home and/or
business. Visual records can help prove the value of lost items. They will also
help with insurance claims or casualty loss deductions on your tax return.
Store these pictures or videos with a friend or relative who lives away from
the area.
3.
Update
Emergency Plans. Review your family’s emergency plan every year, and update
when changes are needed.
4.
Get
Copies of Tax Returns or Transcripts. Visit IRS.gov to obtain a copy of
Form 4506, the Request for Copy of Tax Return, to replace lost or destroyed tax
returns.
Do you have a disaster plan for
your important records? Let us know in the comments below.
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