Business leaders play a pivotal role in community resilience. A cornerstone of this effort is safeguarding critical business records when natural disasters strike. The IRS encourages everyone to take proactive steps to safeguard essential documents and maintain a record of high-value items which is crucial for continuity, recovery, and compliance.
1. Secure Originals in a Fire‑ and Water‑Resistant Container
Store physical copies of business-critical documents—like payroll records, contracts, insurance policies, property deeds, and tax filings—in secure, waterproof, fire-resistant safes
2. Maintain Off‑Site or Digital Backups
Duplicate essential records and keep them off-site, whether in a bank safe-deposit box or a secure digital vault. Scanned files stored on encrypted drives or in the cloud ensure recovery access even if onsite assets are compromised
3. Document Assets with Professional Detail
Compile a comprehensive record of your business’s property and equipment. High-quality photographs or videos, paired with IRS workbooks (Publications 584‑B for business losses), support insurance and tax loss documentation
4. Prepare to Reconstruct Lost Records
Should vital documents be destroyed, the IRS recommends swift reconstruction. This includes requesting tax transcripts via “Get Transcript” and contacting financial and title institutions. Accurately reassembled records are indispensable for tax relief, insurance reimbursement, and access to federal aid
5. Verify Fiduciary Bonds of Payroll Providers
Disasters may interrupt payroll services. Employers should confirm that their payroll providers maintain fiduciary bonds to safeguard federal tax deposits in case of service failures
6. Leverage Automatic IRS Disaster Relief
Following a FEMA-declared event, the IRS often grants automatic extensions on tax filings and payments for businesses in affected regions. Even those just outside designated areas should proactively contact the IRS to explore eligibility
Learn more and access helpful guidance here.