Preparing for Disasters | Tax Tip of the Week | No. 97

Update Your Emergency PlansThe IRS recently issued a press release targeted for those located in areas prone to hurricanes.  While those of us in the Dayton area don’t normally need to worry about hurricanes, the disaster planning advice is still something each of us should consider.Create a Backup Set of Records ElectronicallyTaxpayers should keep a set of backup records in a safe place.  These backups should be stored away from the original set.  Your backups should at least include: bank statements, brokerage statements, tax returns, insurance policies and any will and trust documents.Many financial institutions offer access to these records via the internet, making your job easier.  Any paper-only documents can be scanned and burned onto a CD or DVD.Document ValuablesAnother step to consider is to photograph or videotape the contents of your home, especially items of higher value.  The IRS has a disaster loss workbook, Publication 584, which can help you compile a room-by-room inventory of belongings.These photos or tapes should be stored with a friend or family member living outside your area.Update Emergency PlansEmergency plans should be reviewed annually.  Both personal and business situations change over time as do preparedness needs.Check on Fiduciary BondsEmployers who use payroll service providers should ask the provider if it has a fiduciary bond in place.  The bond could protect the employer in the event of default by the payroll service provider.These are just a few steps to get you started.  You now have something to do as we approach the hazy days of summer when it is too hot to do anything outdoors.Let us know if you have any questions.You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.Rick Prewitt - the guy behind TTW...until next week.