Prepare Now: Simple Steps to Protect Your Financial Records Before a Disaster

When people think about disaster preparedness, they often focus on emergency supplies, evacuation plans, and insurance coverage.

But protecting your financial and tax records is just as important.

The IRS is encouraging taxpayers to take steps now to prepare for potential disasters, including hurricanes, floods, wildfires, and other emergencies. For people who are blind or have low vision, being prepared can be especially important because replacing lost documents after a disaster may involve inaccessible forms, transportation challenges, or long wait times.

Taking a few simple steps today can make recovery much easier later.

Review Your Emergency Preparedness Plan

The IRS recommends reviewing your emergency preparedness plan at least once a year.

Consider questions such as:
• Where are your important documents stored?
• How would you access financial information if you had to leave your home quickly?
• Do trusted family members know where important records are located?

Having a plan in place before an emergency can reduce stress during an already difficult situation.

Create Electronic Copies of Important Documents

One of the best ways to protect important records is to store electronic copies.

Consider scanning and saving documents such as:
• Tax returns
• Social Security documents
• Insurance policies
• Bank statements
• Identification documents
• Medical records

Electronic records can be stored:
• On a USB flash drive
• In cloud storage services
• Through secure online accounts offered by financial institutions

Many banks and financial organizations already provide electronic statements, making it easier to access records when needed.

The IRS also encourages taxpayers to create an IRS Online Account, which provides access to tax transcripts, notices, and other important tax information.

Document Valuable Property

Before a disaster occurs, take photos or videos of valuable belongings.

This may include:
• Electronics
• Furniture
• Jewelry
• Appliances
• Vehicles

Having visual records can make it easier to file insurance claims and document losses if disaster strikes.

Keeping a room-by-room inventory of belongings can also help simplify the recovery process.

Understand Available Tax Relief

When federally declared disasters occur, the IRS often provides special tax relief.

This may include:
• Extended filing deadlines
• Extended payment deadlines
• Additional assistance for affected taxpayers

In many cases, eligible taxpayers automatically receive this relief and do not need to contact the IRS to qualify.

The IRS also offers a Special Services Hotline for taxpayers affected by federally declared disasters.

Why This Matters

Even when disasters never occur, organizing financial records electronically can make day-to-day money management easier.

For blind and low vision individuals, digital documents can often be accessed using screen readers, magnification software, and other assistive technology. Electronic records may also be easier to search, organize, and retrieve than paper files.

Preparing now can help reduce barriers and provide peace of mind if an emergency ever happens.

Penny Forward’s Bottom Line

Disasters are unpredictable, but preparation doesn’t have to be complicated.

Creating electronic copies of important documents, organizing financial records, and understanding available resources can help protect your financial life before an emergency occurs.

Taking these steps today may save significant time, stress, and frustration in the future.