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Don’t let Natural Disasters lead to a Tax Disaster

The recent heavy rains have been record-setting for the east coast. Floods, tropical storms and other natural disasters should be a good reminder that important documents should be stored in a safe and, most importantly, DRY place. Tax information is no different. Along with old photos and keepsakes, tax information can be extremely tough to replace. While it’s an option to order tax transcripts and tax histories from the IRS, you’re at their mercy as far as availability and accuracy go. Not to mention, the IRS doesn’t maintain secondary documents, such as receipts and donation letters – things you could need to verify certain deductions and credits. So, if you haven’t found a safe spot for your tax info yet, you can start by organizing.

1.  Keep all of your information organized, preferably by year, and in a safe location.

2.  The safe location is relative to your circumstances but make sure it is in a waterproof, kid-proof, and thief-proof place that only you will know.

3.  Before you put everything away, make sure you scan all of your documents and keep them digitally archived in two different places. Remember, you can always store your digital information in the cloud.

 

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