Many people many think they keep their financial records safe but how safe are they really? What would happen to your documents if a tornado hit, flooding or a fire? Keeping your important documents locked up in a desk is a good idea but not nearly safe enough. Below are four tips to make sure your won’t have a problem if the worst does occur.
1. Keeping Good Records
Besides your normal paper records you should have a backup copy on your computer. Even better is creating a backup CD or flash drive but keep in mind you will need to safeguard this as well.
2. Document Valuables
If you visit the IRS website you can get a “disaster loss workbook” that will help you create a room by room list of all your belongings. If a disaster does happen you will have a written record of all your valuables for insurance purposes. Secondly you can take pictures or even a video to serve the same purpose.
3. Emergency Plans
Make sure you have a way to receive emergency warnings such as battery powered radio’s. This will give you time to protect your financial documents if they could be exposed to harm.
4. IRS
If you the worst does happen and you loose everything the IRS can actually help you. If the IRS declares your situation a federally declared disaster you can get copies of all your previous tax related documents. Just submit Form Form 4506 (Request for Copy of Tax Return) or 4506-T (Request for Transcript of Tax Return).
The best angle is to be prepared for multiple situations and backup, backup, backup!
