Washington News

The Internal Revenue Service (IRS) reminds taxpayers that May is National Wildfire Awareness Month and the week of May 4th to the 10th is National Hurricane Preparedness Week. The National Oceanic and Atmospheric Administration (NOAA) have warned that there is a substantial chance that the Atlantic hurricane season will be stronger than usual. During the first quarter of 2025 the Federal Emergency Management Agency (FEMA) issued 12 disaster declarations.

With the substantial risk of hurricanes in the southeastern region and the possibility of tornadoes, fires, earthquakes and other natural disasters throughout the nation, it is important for all taxpayers to take reasonable protective steps. These steps include securing and duplicating essential documents, creating lists of collections and other valuable property and learning how to find assistance. Planning ahead can help ensure a smoother financial recovery after a natural disaster.

1. Secure Your Documents — You should keep your important documents in waterproof containers and in a secure location. Important items include your tax returns, birth certificates, deeds to your home and other property, insurance policies and other similar documents. Some individuals choose to have a copy of these documents held by a relative or friend in a different state.
2. Copies of Documents — Some of your documents may be available only on paper, so you may wish to scan them into a PDF or other digital file format. Once they are scanned, you have the option of transferring the documents to a commercial cloud-based storage system. This will provide additional security.
3. Inventory of Valuables — Taxpayers should have a detailed inventory of valuable property. You may take photos or videos of collections, art, jewelry or other valuable items. It is also helpful to have a general description of your property, which may include the make and model numbers of some items.
4. How to Get Help — If you are the victim of a natural disaster, it is important to understand how to obtain assistance. You will want to contact your insurance agent to report the loss. Some financial institutions are able to provide statements and electronic documents that may assist you in rebuilding your financial affairs. The IRS.gov website has a helpful page with the title "Reconstructing Records."
5. IRS Assistance — The IRS provides assistance after a federal disaster has been declared. The IRS “Tax Relief in Disaster Situations” webpage on IRS.gov may be helpful. In many cases, the IRS allows delayed dates for filing or making tax payments. The dates will be specific to your area, so check that out on IRS.gov. There also is an IRS disaster hotline at 866-562-5227.
6. Disaster Loss Deduction — If you have a substantial loss, you may qualify for a disaster loss deduction. The uninsured or unreimbursed disaster loss may be deductible under the rules set forth in IRS Publication 547, Casualties, Disasters, and Thefts.

Ken Graham, Director of the National Weather Service, urged everyone to be ready for the hurricane season. He stated, "Ensure that you are ready to take action if a hurricane threatens your area by developing an evacuation plan and gathering hurricane supplies now, before a storm is bearing down on your community."