Disaster tax relief is more important than ever as we enter National Wildfire Awareness Month and Hurricane Preparedness Week. The IRS is urging taxpayers to protect their financial records ahead of potential emergencies.
Why Disaster Preparedness Matters for Taxpayers
While tax season may be behind us, disaster season is just getting started. From wildfires to hurricanes, the risks to your home, finances, and critical tax documents are real. Early preparation can help ensure that you qualify for disaster tax relief should the need arise.
2025 Has Already Seen Significant Disaster Activity
So far in 2025, FEMA has issued 12 major disaster declarations across nine states. These events include winter storms, flooding, tornadoes, wildfires, and landslides. You can check FEMA’s Current Disasters page for the latest updates on declarations in your area.
How to Prepare for Disaster Tax Relief: IRS Tips
1. Safeguard Important Documents
Store original documents—such as tax returns, Social Security cards, birth certificates, and property deeds—in a waterproof container in a secure place. Also, make copies and store them in a secondary location like a safe deposit box or with a trusted person in another area. Digital backups (like scanned copies on a flash drive) are highly recommended.
2. Document High-Value Items
Use your phone or tablet to photograph or video your belongings, especially high-value items. This record can be vital when claiming insurance or disaster tax relief. The IRS offers workbooks to help with this process:
3. Know How to Rebuild Records
After a disaster, you may need to reconstruct records to claim federal assistance or insurance reimbursement. Visit the IRS Reconstructing Records page for guidance.
4. Employers: Verify Your Payroll Provider
If you use a payroll service, check whether they carry a fiduciary bond. This can protect you in the event your provider fails to make timely tax deposits after a disaster.
IRS Disaster Tax Relief: What You Need to Know
After FEMA declares a major disaster, the IRS may automatically extend deadlines for filing tax returns and making payments. You do not need to contact the IRS to receive this relief if you live or run a business in a qualifying county.
To check if your area is eligible, visit the IRS Disaster Relief page. If you live outside the declared areas but have been impacted, you can still contact the IRS Disaster Hotline at 866-562-5227 to see if you qualify.
Helpful Resources for Disaster Preparation and Recovery
- IRS.gov: Preparing for a Disaster
- Publication 547: Casualties, Disasters, and Thefts (PDF)
- Publication 583: Starting a Business and Keeping Records
- FEMA.gov
- DisasterAssistance.gov
- Ready.gov
Final Thoughts
Disasters strike unexpectedly—but that doesn’t mean you have to be unprepared. Protecting your financial documents, keeping digital records, and knowing your options for IRS disaster tax relief can make all the difference in recovery.
Need help safeguarding your business or preparing your taxes? Contact Your Tax Solutions today—we’re here to help you stay ready for whatever comes your way.
