Protect your documents during peak hurricane season
LEARN HOW YOUR PLANNED GIFT CAN HELP THE AMERICAN LEGION
With the peak hurricane season in September, the Internal Revenue Service reminds taxpayers to protect their tax and financial records.
Between 1851 and 2024, there have been 1,062 hurricanes in the Atlantic Ocean. September is the peak month, with 425. During this time, there have been 169 major hurricanes (category 3, 4 or 5), and 63 made landfall in the United States.
This September could be another busy season for hurricane-watchers. The Caribbean water temperatures are 85-90 degrees Fahrenheit and favorable to the development of tropical storms and hurricanes. With this warmer water, there is greater hurricane intensity. The strongest September hurricanes were the Galveston Hurricane in 1900 and Hurricane Carla in 1961.
September is designated as National Preparedness Month. All individuals should use this time, before the natural disaster season, to protect important tax and financial information. The IRS offers several helpful tips to protect personal, financial and tax information. Additional information is also available on IRS.gov or FEMA.gov.
Protect Important Documents Original documents may include tax returns, Social Security cards, marriage certificates, birth certificates and deeds to property. These should be secured in a waterproof container in a safe location. You should also make copies of important documents and keep them in a safe deposit box or send them to a trusted person in a different location.
Record of Valuables With the ease of taking pictures on your cellphone, you should maintain photos or videos of your high-value items. These will be important if you lose the items in a natural disaster and can help support your claims for tax benefits or insurance claims. The IRS also offers Publication 584, Casualty, Disaster, and Theft Loss Workbook. This will be very helpful to you if you have a loss due to a natural disaster.
Rebuild Your Records After any hurricane, you may have a challenge in reconstructing or rebuilding your records. These records could be essential for receiving a federal grant or an insurance company payment. If you can accurately estimate your loss through records, the insurance adjuster will be able to justify the payments. The IRS has a Reconstructing Records webpage on IRS.gov that may be helpful.
Employer Fiduciary Bond If you are an employer, you may have difficulties if your payroll service provider experiences a natural disaster. Your provider is obligated to make timely federal tax payments. There should be a fiduciary bond that protects you as an employer if your provider is in a natural disaster and defaults.
IRS Tax Relief If FEMA declares your area a federal disaster zone, the IRS frequently postpones tax filing and payment deadlines. If you are within the disaster area, you will not need to contact the IRS. The agency automatically identifies taxpayers with a business or personal address in the covered disaster area. If you reside outside the covered disaster area but have been impacted, you may call 866-562-5227 to determine whether you qualify for relief.
The American Legion’s Planned Giving program is a way of establishing your legacy of support for the organization while providing for your current financial needs. Learn more about the process, and the variety of charitable programs you can benefit, at legion.org/plannedgiving. Clicking on “Learn more” will bring up an “E-newsletter” button, where you can sign up for regular information from Planned Giving.