The IRS released Tax Tip 2024-84 this week which includes important information for victims of a disaster as they reconstruct tax and financial records to document and prove losses as they seek federal assistance or insurance reimbursement.
The tax tips that follow help taxpayers reconstruct important records they will need as they begin to recover and rebuild:
Tax Records:
- Taxpayers can use Get Transcript on IRS.gov to access free tax return transcripts immediately.
- Transcripts can be ordered by taxpayers with no internet service by calling 800-908-9946. Follow the prompts.
Financial Statements:
Taxpayers need to download records online or contact their bank or credit card company to get past statements or 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 contact the contractors who did the work and ask for statements to verify the work and cost. If no pictures are available, descriptions from friends and relatives who saw the house before and after any improvements can be written out as proof.
- 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.
- 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.
Taxpayers can visit the Around the Nation page of IRS.gov to find news about disaster tax relief specific to their area.
Whenever possible, keep your vital records and financial information in a fireproof document bag that can be taken with you should you need to leave your home or business. Additionally, copies of bank statements, tax returns, insurance policies, pictures, and videos of all properties and possessions, along with agent contact information should be stored off-site. Taking pictures and videos before disaster strikes will ensure easier insurance claim, government assistance, and tax benefits. When original documents are available only on paper, taxpayers should use a scanner and save them on a USB flash drive and in the cloud.
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