Preparing Tax and Financial Records for Natural Disasters
With tax season over and rainy season in full swing, now is a good time for taxpayers to think about protecting their important tax and financial information from natural disasters. The impact of such disasters on individuals, organizations and businesses can be muted by a disaster emergency plan.
Disaster preparedness. Disaster preparedness is a year-round task. Having a plan in place before disaster strikes is necessary for a speedy recovery.
Note. Through April, the Federal Emergency Management Agency (FEMA) has issued 12 major disaster declarations in nine states impacted by winter storms, flooding, tornadoes, wildfires, landslides, and mudslides.
Important documents. Taxpayers should keep originals of important documents such as tax returns, Social Security cards, marriage certificates, birth certificates, and property ownership documents in a locked water and fireproof container in a safe place. Taxpayers should also make copies of these documents and store them in a separate location. Physical documents can be kept in a safety deposit box or with a trusted friend or family member who lives in a different area.
Scanning these documents and keeping them in an encrypted folder online or on a secure computer in a different location is another way to keep important documents accessible in case of an emergency. Taxpayers could also save important documents on an encrypted flash drive that they keep with their emergency kit.
Documenting other valuables. Taxpayers should keep an inventory of all the personal property in their home and/or business location. An easy way to document personal property is to take pictures or videos with a cell phone or other mobile device. A simple list with current photos or videos can support insurance claims and substantiate disaster losses for tax purposes.
Note. The IRS’ disaster loss workbooks can help individuals and businesses make lists of personal or business property. Workbooks can be found in the following publications:
- IRS Publication 584, Casualty, Disaster and Theft Loss Workbook (Personal-Use Property), and
- IRS Publication 584–B, Business Casualty, Disaster and Theft Loss Workbook,
Reconstructing records. Reconstructing records is easy for taxpayers with a disaster plan that includes keeping originals and copies of important documents in a safe place. For those who don’t it can be a daunting task.
Tax records. Taxpayers needing tax return information can get free return transcripts using the Get Transcript tool on IRS.gov. Copies of actual returns can be ordered by mail using Form 4506.
Note. Taxpayers in declared disaster areas should write the appropriate disaster designation on their Form 4506 so the IRS will waive the usual fee.
Real property records. For copies of real property records, taxpayers can obtain property tax statements with land and building values from the county assessor’s office and copies of deeds and mortgage documents from the county recorder. For inherited property, taxpayers should check court records for probate values. If a trust or estate existed, contact the attorney who handled the estate or trust.
Vehicle records. To determine the fair market value of a vehicle that was damaged in a disaster, taxpayers can consult
- Kelley’s Blue Book
- National Automobile Dealers Association
- Edmunds
Note. The above resources are available online and also in most public libraries.
For a recently purchased vehicle, contact the dealer for a copy of the purchase contract.
Personal property. If the taxpayer doesn’t have photos or videos of their property, they should:
- Draw a floor plan showing where each piece of furniture was placed — include drawers, dressers, and shelves.
- Sketch pictures of the room looking toward any shelves or tables showing their contents. These sketches do not have to be professionally drawn, just functional.
- Take time to draw shelves with artwork, pictures, books, or memorabilia on them.
- Be sure to include garages, attics, closets, basements, and items on walls.
Note. For recently purchased furniture and household items, bank and credit card statements may help taxpayers remember what they purchased.
Business records. Business owners can also obtain tax transcripts from the IRS. To recreate other information
- Copies of invoices can be obtained from suppliers to create lost inventories lists.
- Check security cameras, mobile phone, and other cameras for pictures and videos of buildings, equipment, and inventory.
- Copies of bank statements will provide proof of income. The deposits should reflect what the sales were for the statement period.
- Copies of sales tax returns should reflect gross sales for the return period.
- If the taxpayer doesn’t have photographs or videos, they should use the sketch method described above. For example, for the inside of the building, the taxpayer should sketch where equipment and inventory were located. For the outside of the building, the taxpayer should map out where items such as shrubs, parking, signs, and awnings were located.
- If the taxpayer recently purchased the business, ask the broker for a copy of the purchase agreement. That document should detail what property was acquired.
- For a newly constructed building, contact the contractor or local planning commission for building plans.
Payroll records and fiduciary bonds. Employers that need to recreate their employment tax records can contact their payroll service provider for copies of Forms 941 and records of tax payments.
Note. Employers should use a payroll service provider that has a fiduciary bond. A fiduciary bond protects the employer if the payroll service provider defaults on its responsibilities to file returns and make tax payments.
If the employer isn’t using a payroll services provider, the state revenue department may have copies of filed employment and unemployment tax returns as well as sales tax returns.
Note. An employer may also try to contact employees for copies of Forms W-2.
IRS disaster relief. The IRS can provide disaster relief after FEMA issues a major disaster or emergency measures declaration. This relief generally involves the IRS postponing certain tax filing and payment deadlines for taxpayers who reside or have a business in counties affected by the disaster.
The IRS provides details on states and counties that have been issued relief on the IRS Disaster Relief page.
The IRS automatically identifies taxpayers located in the disaster area and provides filing and payment relief.
Note. The IRS disaster hotline (866-562-5227) is manned by IRS specialists trained to handle disaster-related tax issues.
For more information about preparing for a disaster, see Preparing for a disaster on IRS.gov.
For more information about disaster tax relief for victims of federally-declared disasters in 2025, see Checkpoint’s Federal Tax Coordinator ¶S-8501.25.
© 2025 Thomson Reuters
