A well-thought-out emergency preparedness plan is a critical component for surviving natural disasters. Taxpayers, whether individuals, organizations or businesses, should take time now to create or update their emergency plans.
A solid plan includes securing and duplicating essential documents, creating lists of property and knowing where to find information once a disaster has occurred.
Secure key documents and make copies
Taxpayers should place original documents such as tax returns, birth certificates, deeds, titles and insurance policies inside waterproof containers in a secure space. Duplicates of these documents should be kept with a trusted person outside the area of the taxpayer. Scanning them for backup storage on electronic media such as a flash drive is another option that provides security and portability.
Document valuables and equipment
Current photos or videos of a home or business’s contents can help support claims for insurance or tax benefits after a disaster. All property, especially expensive and high value items, should be recorded.
Employers should check fiduciary bonds
Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
Reconstructing records after a disaster may be required for tax purposes, getting federal assistance or insurance reimbursement.
For assistance and inquiries, feel free to schedule an appointment with one of our professional CPAs today.