FROM THE IRS -AFTER A DISASTER

Rebuilding after a natural disaster can be overwhelming. Important documents like financial information and tax records are often destroyed in a disaster, and reconstructing these records is important for applying to federal assistance and insurance reimbursement. IRS.gov has the information disaster victims need, including disaster-related filing extensions and information about tax relief.

From the IRS: Taxpayers should be cautious of scammers targeting disaster donations.

Scammers commonly set up fake charities to take advantage of people’s generosity during natural disasters and other tragic events. Taxpayers should use the Tax Exempt Organization Search tool to check that an organization is legitimate before they donate money. Follow these tips before making a charitable donation:

Always verify. Scammers use names that sound like well-known charities to confuse people. Fake charity promoters may use emails, fake websites, or altered or “spoofed” caller ID to make it look like a real charity is calling to solicit donations. Potential donors should ask the fundraiser for the charity’s name, website and mailing address so they can independently confirm the information. Use the TEOS tool to verify if an organization is a legitimate tax exempt charity.
Be cautious about how a donation is requested. Never work with charities that ask for donations by giving numbers from a gift card or by wiring money. That’s a scam. It’s safest to pay by credit card or check — and only after verifying the charity is real.
Don’t share too much information. Scammers are on the lookout for both money and personal information. Never disclose Social Security numbers, credit card numbers, personal identification numbers or passwords.
Don’t give in to pressure. Scammers often pressure people into making an immediate payment. In contrast, legitimate charities are happy to get a donation at any time. Donors should not feel rushed.

Taxpayers who encounter a fake or suspicious charity should see the FBI’s resources on charity and disaster fraud. Taxpayers who give money or goods to a charity can claim a deduction if they itemize deductions, but these donations count only if they go to a qualified tax exempt organization recognized by the IRS. More information

Disaster tax relief information and resources on IRS.gov.

Tax relief is available for people living in areas declared disasters by the FEMA. To find out if an area qualifies for disaster tax relief, check IRS news from around the nation.

If people live at an address in an area that qualifies for IRS disaster tax relief, they automatically get extra time from the IRS to file returns and pay taxes.
If people have damaged or lost property due to a federally declared disaster, they may qualify to claim a casualty loss deduction and get a larger refund. They can claim this on their current or prior-year tax return.
If people have lost their tax records, they can request a tax return transcript and a copy of their tax return from the IRS. People can get tax return transcripts online or request mail delivery with Get Transcript. Taxpayers can also file Form 4506-T, Request for Transcript of Tax Return. To speed up the process, people who file Forms 4506-T or 4506 should:
Write on the form that the request is disaster related.
Write the type of disaster and the state where it occurred.

People who relocate need to submit a change of address.

After a disaster, people might need to relocate. Taxpayers should use their current address when filing their tax return. If they move after filing, they should update their address with the IRS by calling the IRS Disaster Hotline at 866-562-5227, or by filing Form 8822, Change of Address.
The IRS also recommends that taxpayers notify the post office serving the old address.

Small Business Administration loans and grants.

The Small Business Administration offers disaster assistance to business owners, homeowners and renters in a federally declared disaster area. To qualify for an SBA loan or grant, people must have filed all required tax returns.

Resources from the IRS about Preparedness Plans

The IRS also reminds us that emergency preparedness plans should include copies of vital records and financial information. Here are some things everyone can do to help protect their financial records.

Update emergency preparedness plan annually

Personal and business situations are constantly evolving, so taxpayers should review their emergency preparedness plan annually. The U.S. Department of Homeland Security’s Ready.gov website has resources and checklists to help people put together their emergency preparedness plan.

Create electronic copies of documents
Taxpayers should keep important documents in a safe place. This includes bank statements, tax returns and insurance policies. This is especially easy now since many financial institutions provide statements and documents electronically. If original documents are available only on paper, taxpayers can use a scanner and save them on a USB flash drive or in the cloud.

Document valuables
Documenting valuables by taking pictures or videoing them before disaster strikes makes it easier to claim insurance and tax benefits. IRS.gov has a disaster loss workbook that can help taxpayers compile a room-by-room list of belongings.

Tax relief available for disaster situations
Information on Disaster Assistance and Emergency Relief for Individuals and Businesses is available at IRS.gov. Taxpayers should also review Publication 547, Casualties, Disasters and Thefts.

Taxpayers who live in a federally declared disaster area can visit Around the Nation on IRS.gov and click on their state to review the available disaster tax relief. Those who live in counties qualifying for disaster relief receive automatic filing and payment postponements for many currently due tax returns and don’t need to contact the agency to get relief.

Learn more.

More information

These IRS.gov webpages have tax-related disaster relief information:

IRS News from Around the Nation: News about disaster relief and tax provisions that affect certain states.
Tax Relief in Disaster Situations: Links to resources that walk people through information that will help them after a disaster. It also links to local news releases and frequently asked questions.
Frequently Asked Questions for Disaster Victims: Answers to questions that victims may have. Each page highlights a specific topic to help people after a disaster.
Reconstructing Records After a Natural Disaster or Casualty Loss: Help for people who need to reconstruct their financial records after a disaster. This may be essential for properly documenting a tax-deductible loss, supporting various tax-related transactions or getting federal assistance or insurance reimbursement.

These IRS publications can also help taxpayers:

Publication 3067, IRS Disaster Assistance – Federally Declared Disaster provides information to individuals and businesses affected by a federally declared disaster. It also covers the assistance available to disaster victims.
Publication 584, Casualty, Disaster and Theft Loss Workbook helps individual taxpayers figure their loss on personal-use property in the event of a disaster, casualty or theft.
Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook helps businesses figure their loss on business and income-producing property in the event of a disaster, casualty or theft.
Publication 547, Casualties, Disasters and Thefts explains the tax treatment of casualties, thefts and losses on deposits.

More information:
DisasterAssistance.gov
Ready.gov