Wednesday, June 25, 2014

How to Keep Your Records Safe in Case Disaster Strikes


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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