Another hurricane season is upon us! The Atlantic hurricane season begins June 1st. The IRS offers these suggestions for preparing for a natural disaster:
• Safeguard records – Make backup copies of important records and store the backup separately from the originals. Consider using electronic backup copies.
• Inventory belongings – Create an inventory of possessions using photographs and video for higher priced items. IRS Publication 584 provides additional information on creating an inventory.
• Review and update emergency plans – Review your emergency plans and make sure that it is up to date. At the same time, review emergency plans with employees, especially new employees.
• Check on Fiduciary Bonds – Confirm with your payroll provider that they have a fiduciary bond that will protect employees in the event the payroll provider defaults during a natural disaster.
In the event that important tax records are lost in a natural disaster, tax records previously filed with the IRS can be requested using Form 4506. Additionally, in the event of a natural disaster close to a tax deadline, listen to the news or review the IRS website as the IRS frequently extends deadlines for affected individuals and businesses.
Nova 401(k) Associates has multiple offices so that we will be able to serve our clients even if there is a natural disaster in one location. Nova 401(k) Associates encourages clients and advisors to contact us with questions about our disaster recovery plan or for assistance following a natural disaster.