Preparing Financial and Tax Information following a Disaster

Individuals should be prepared for natural disasters such as wildfires, mudslides, landslides, severe thunderstorms, or tornadoes. A natural disaster is a devastating event that can have a lasting impact on you and your family. It is always good to be prepared and plan to protect your personal financial and tax information. The IRS provides this information to help you to recover –

Essential resources from the IRS to rebuild records after a natural disaster

It may be important for victims of a disaster to reconstruct their tax and financial records to help prove and document their losses so they can get federal assistance or insurance reimbursement. Below are some tips to help people reconstruct important records they may need as they begin to recover and rebuild.

Tax records

Taxpayers can get free tax return transcripts immediately using Get Transcript on IRS.gov.
If they don’t have internet access, taxpayers can order transcripts by calling 800-908-9946 and following the prompts.

Financial statements

People can gather past statements from their credit card company or bank. These records may be available online. If not, people can also contact their bank to get paper copies.

Property records

Property documents: Homeowners can get documents related to their property by contacting the title company, escrow company or bank that handled the purchase of their home or other property.
Home improvements: Taxpayers who made home improvements can get in touch with the contractors who did the work and ask for statements to verify the work and cost. They can also get written descriptions from friends and relatives who saw the house before and after any improvements.
Inherited property: Those who inherited property can check court records for probate values. If a trust or estate existed, taxpayers can contact the attorney who handled the trust.
Records of Your Valuables: Many individuals own art, collectibles or other types of valuable personal property. It is recommended that you compile a list of your valuables and have photos or videos to catalogue the items. These photos or videos will help you support your claims for insurance proceeds or an applicable tax deduction. The IRS offers disaster loss publications for both individuals and businesses that need guidance in making a list of valuables. An individual should refer to Publication 584: Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property). If you own a business, you may want to review Publication 584-B: Business Casualty, Disaster, and Theft Loss Workbook.
No records: People with no records available should check the county assessor’s office for old records that might address the value of the property.
Vehicles: Vehicle owners can research the current fair-market value for most vehicles. Resources are available online and at most libraries.
Reconstructing Records: If you are a victim of a natural disaster, you may lose important financial or tax records. These could be required for federal assistance or insurance reimbursement. Many types of reimbursement require an accurate estimate of the amount of the loss. The Reconstructing Records page on IRS.gov is an excellent starting place if you need to rebuild your records.
Employer Fiduciary Bond Employers: who use a payroll service provider should verify that there is a fiduciary bond in place. If the provider is in the natural disaster region, the organization may suffer a major business loss and default on its obligations. An employer may obtain a fiduciary bond that will protect it in the event of a disaster that causes the payroll service provider to default.

Taxpayers can find news about disaster tax relief specific to their area on the Around the Nation page of IRS.gov.

More information

IRS Tax Relief Following a declaration of a disaster zone by the Federal Emergency Management Agency, the IRS frequently postpones tax filing and payment deadlines, more information is available on the IRS Disaster Relief page on IRS.gov. If you are in a federal disaster zone, you may qualify for filing and payment relief. Individuals who are not in the covered disaster area but are impacted by a specific disaster may still qualify for relief. If you wish to speak to a trained IRS specialist, you may call 866-562-5227 for answers to disaster-related concerns.

Tax relief in disaster situations, Internal Revenue Service, updated Apr. 4, 2024.

Energy Efficient Home Improvements could help survivors reduce energy bills and taxes in the future. Homeowners who make improvements like replacing old doors and windows, installing solar panels or upgrading a hot water heater may qualify for home energy tax credits.

If you or someone you know have been impacted by Hurricane Helene, here are United Policyholders’ recommended First Steps:

Take photos BEFORE clean-up, disposal or repairs. Photo document all damage.
Keep a daily journal with notes on conversations with insurance, repair, government, and other professionals, names, phone numbers, email addresses.
Focus on drying/cleaning out, avoiding further damage and getting the damage inspected, measured, and estimated by qualified and reputable experts.
Get a complete copy of your current home insurance policy and any other separate policies you may have in place such as auto, flood, wind, water line insurance, etc. Check your deductibles.
If the damage is above your deductible, notify your agent and they’ll get your claim started. If you bought your insurance direct through an insurance company, notify them and they will open a claim and assign you a claim number. If you had only minor damage, it’s best to pay for repairs out of pocket.
Most home policies cover damage from wind-driven rain and trees but exclude coverage for flood damage.
Flood insurance policies have different deadlines and rules than home insurance policies.
If you have a flood insurance policy, it’s probably a standardized “NFIP” (Nat’l Flood Ins. Program) policy. It also may be a “private” flood insurance policy (not NFIP).
You may have damage that’s covered by both your home and flood policies.
If an adjuster says damage isn’t covered, get an independent professional opinion before giving up on getting some or all of your claim paid.
Give your home and/or flood insurer a chance to do the right thing, but advocate for yourself and be prepared to get professional help if you’re not being treated fairly.
Register with FEMA even if you don’t plan to apply for aid or an SBA loan.
Speak “UP” (politely push for fair treatment) If you hit a wall, file a complaint with your state insurance oversight agency and get qualified, reputable professional help.