As part of National Preparedness Month, the Internal Revenue Service (IRS) reminds taxpayers to protect important tax and financial records. Natural disasters such as floods, wildfires, hurricanes, tornadoes and severe storms can occur with little warning and may destroy documents needed for insurance claims, federal assistance and tax filings.

The IRS notes that taking a few simple steps now can make it easier to recover after a disaster, apply for assistance and make use of available tax relief. By preparing important records and reviewing emergency plans before an emergency occurs, individuals and businesses can reduce financial and administrative challenges during the recovery process.

Protect Important Documents: Taxpayers should keep critical records in waterproof and fireproof containers. Essential documents include tax returns, birth certificates, Social Security cards, insurance policies, property titles and other important financial records. Having these documents readily available can be invaluable during disaster recovery.

Keep Electronic Copies: Important paper documents should be scanned and stored electronically whenever possible. Digital copies may be saved on a secure device or through a cloud-based storage service. Many banks, brokerage firms and other financial institutions also provide electronic statements that can help replace lost records.

Keep Records of Valuable Property: Taxpayers should maintain a detailed record of their valuable property. Photos and videos of homes, businesses, vehicles, collections and personal belongings can help support insurance claims and disaster-related tax deductions. The IRS also provides disaster loss workbooks that help individuals and businesses create inventories of property and equipment.

Review Your Emergency Plan: Disaster preparedness should be an ongoing process. Individuals and businesses are encouraged to review and update their emergency plans each year. Resources and preparedness checklists are available through Ready.gov and can help taxpayers develop plans for protecting family members, employees and important records.

Know How to Access Tax Records: The IRS recommends becoming familiar with online tools before an emergency occurs. Through an IRS Individual Online Account, taxpayers can access transcripts, notices and other tax information. If records are lost during a disaster, taxpayers may also obtain copies of returns and transcripts through IRS online services.

Business Owners Should Review Payroll Protections: Employers who use payroll service providers should determine whether the provider maintains a fiduciary bond and understand how payroll records will be protected in an emergency. Business taxpayers can also use their Business Tax Account and the Electronic Federal Tax Payment System (EFTPS) to manage tax obligations and access payment history online.

Following a federally declared disaster, the IRS may postpone certain filing and payment deadlines for affected taxpayers. In many situations, relief is granted automatically to taxpayers whose address of record is located within the designated disaster area. Taxpayers should review IRS disaster announcements for details regarding qualifying deadlines, returns and payments.

Eligible individuals and businesses that suffer uninsured or unreimbursed disaster-related losses may claim losses on a federal tax return, subject to applicable tax law requirements. Additional guidance is available in IRS Publication 547, Casualties, Disasters, and Thefts. Taxpayers needing special disaster assistance may also contact the IRS Special Services Hotline at 866-562-5227.