IRS Reminds Taxpayers to Develop Emergency Preparedness Plans, IR-2023-161

In light of September being the National Preparedness Month, the IRS has reminded taxpayers of the upcoming hurricane season and the need to develop an emergency preparedness plan. Taxpayers must be equipped with an emergency plan or if they already have one in place, update it for 2023. Some ways in which taxpayers can be better equipped to brave through natural disasters are:

• keeping critical original documents inside a water and fire proof container in a secure space;
• duplicating essential documents and storing them in an accessible place;
• storing duplicate copies of essential documents with a trusted friend or relative at a location outside the potentially disaster impacted area;
• documenting valuables by taking photos/videos and including a detailed description; and
• storing a digital file format of essential documents and storing it securely

Further, taxpayers and businesses can reach out to Disaster Assistance and Emergency Relief for assistance in recovering financially from the impact of a disaster. For assistance in compiling a list of belongings or business equipment, individuals and businesses can refer to the IRS disaster loss workbooks. However, if taxpayers face loss of records after a disaster, rebuilding them is a requirement for tax purposes, federal assistance or insurance reimbursement. For tips on reconstructing records, visit the IRS website.

The IRS advised employers to use Electronic Federal Tax Payment System (EFTPS) to make their federal tax deposits and business tax payments. The IRS recommends EFTPS as it is a convenient and easy-to track option available to businesses. Finally, IRS is always ready to help its taxpayers as, following a federal disaster declaration it may postpone tax payment deadlines or provide other relief to its taxpayers. The disaster relief is applied automatically for taxpayers located in the covered disaster area.