Emergency Preparedness: Safeguard Your Personal Records

Not to press the panic button, but with Hurricane Irene on the way, and after the earthquake earlier this week, some people’s thoughts are turning to emergency home preparedness. 

One important step people can take is safeguarding their financial records. The Internal Revenue Service suggests a few ways individuals can make sure their documents are backed up and secure in the event of an emergency. 

1. Recordkeeping  Important documents like W-2s, tax returns and bank statements can be scanned into an electronic format and stored on a flash drive or CD.  Store these in a strongbox or other secure place, along with documents like home-closing statements, vehicle titles, insurance records and birth, death or marriage certificates and legal paperwork. Some online services can automatically back up computer files and store them offsite. Regardless of how you save your documents (whether it is electronically or on paper) ensure they are safe from the elements, but also encrypted and/or locked up to guard against disclosure or theft.
2. Document Valuables  Compile a room-by-room list of your belongings. Disaster loss workbooks are available through the IRS or you can simply make a list yourself. Photographing or videotaping the contents of your home, especially items of greater value, is recommended. This will help you recall and prove the market value of items for insurance and casualty loss claims in the event of a disaster.
3. Update Emergency Plans Make sure you have a means of receiving severe weather information; if you have a NOAA Weather Radio, put fresh batteries in it. Make sure you know what you should do if threatening weather approaches or if a fire occurs.  Review your emergency plans annually. 

Finally, if your financial documents are lost in the event of a federally declared disaster, the IRS will provide copies or transcripts of previously filed tax returns free of charge.  Submit Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return.  Clearly indicate the official name of the disaster in red at the top of the form, to expedite processing and waive the usual fee for tax return copies.

For more information, type “Preparing for a Disaster” in the search box at www.irs.gov.

or go to: 

http://www.irs.gov/newsroom/article/0,,id=239949,00.html?portlet=7