Story by Guest Columnist | August 29, 2009 | Tags: cary, Community, nc, taxes
Photo from NOAA
By Chris Young, CPA
Special to CaryCitizen
So far, it’s been a mild hurricane season. But whether you’ve lived in Cary for your whole life or just arrived yesterday, don’t let that lull you into a state of complacency.
Even mild hurricanes can cause major damage. But a little planning can avoid one heartache: you can safeguard your tax records now.
Below are some tips from the IRS for protecting your tax records. If you are not presently doing one or more of the following, now is the time!
1. If someone prepares your tax returns, make sure they keep copies of all returns and forms, as well as all original documents they used to prepare them and that they will make them available to you when necessary.
2. Create an electronic backup for your records, including bank statements, tax returns, insurance policies, etc., by scanning your original documents into electronic form and downloading them to a backup storage device or burning them onto a disk. Store your backup separate from the original documents.
3. Document your valuables using photographs or video to help compile a list of all your valuables and help prove the market value of items.
4. Do not keep the photos inside your residence. Instead, give them to a family member or friend who lives outside of your area, or store them in a safety deposit box at your bank.
5. Update your personal and business emergency plans and review changes annually with all family members and employees.
6. If you have employees and use a payroll service, ask the provider if it has a fiduciary bond in place. A fiduciary bond will protect the employer in the event of a default by the payroll service provider.
7. Remember that backup copies of tax returns and all attachments and transcripts can be requested from the IRS. No fee is required for this service if the taxpayer qualifies for individual assistance by residing in a federal disaster area.
“A person doesn’t know how much he has to be thankful for until he pays taxes on it.” -Author Unknown
