Is Your Business Prepared for a Natural Disaster?
Posted on Wed, Jun 08, 2011
You may have taken steps to protect your personal belongings in case of disaster, but have you ever thought about your business?
The IRS has a short video about safeguarding your tax and other business records in case of disaster, such as a major storm. Here are the key points: Create an electronic backup of your important records, and store them away from your originals. Scan or download important records, such as bank statements, tax returns, and insurance policies, and download them on an external drive or burn them to a CD. Document your valuables before disaster strikes. The IRS has a workbook for documenting the belongings in each area of your home. If you have a loss, and you use part of your home for business, you can use worksheet A in the workbook to calculate your business losses. Update your emergency plans. Anytime you add an employee to your payroll or make changes to your personnel, revisit your disaster action plan and make sure employees understand it. Find out whether your payroll provider has a fiduciary bond in place to protect you (in case your payroll provider is impacted by a disaster!)
If Disaster Strikes Your Business
If a natural disaster such as a tornado, hurricane or other major storm strikes your area, the IRS may offer you tax relief in the form of more time to make payroll tax deposits or extended deadlines for payroll tax and income tax returns. If you're a victim of a recent storm, check Tax Relief in Disaster Situations to see what relief is offered to your area, or call 1-866-562-5227 for more information. The IRS can also help you recover lost tax documents (for a fee.) File Form 4506, Request for Copy of Tax Return.