Emergency Preparedness
It’s the time of year when Spring is in full swing, children are excited about summer, grads are making plans for the future. It’s also the time of year when the weather can change rapidly, not always for the best. Having grown up in the south, I am accustomed to severe weather changes and I’ve seen the damages and personal loss caused by flooding, hail, and tornados. For small business owners, being prepared can mean staying in business following a disaster.
So, let’s talk about emergency preparedness. Planning what to do in case of a disaster is an important part of being prepared. The Internal Revenue Service encourages taxpayers to safeguard their records. Some simple steps can help taxpayers and business protect financial and tax records in case of disasters.
Take advantage of paperless recordkeeping for financial and tax records. Many people receive bank statements and documents by email. This method is an excellent way to secure financial records. Important tax records such as W-2s, tax returns and other paper documents can be scanned onto and electronic format.
Be sure you back up your electronic files and store them in a safe place. Making duplicates and keeping them in a separate location is a good business practice. Other options include copying files onto a CD or DVD or storing files in cloud storage software. Many retail stores sell computer software packages that can be used for recordkeeping.
When choosing a place to keep your important records, convenience to your home should not be your primary concern. Remember, a disaster that strikes your home is also likely to affect other facilities nearby, making quick retrieval of your record difficult and maybe even impossible.
Document valuables and business equipment. The IRS has disaster loss workbooks for individuals ( Publication 584, Casualty, Disaster, and Theft Loss Workbook) and businesses ( Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook) that can help you compile a room-by-room list of your belongings or business equipment. This will help you recall and prove the market value of items for insurance and casualty loss claims.
One option is to photograph or videotape the contents of your home and/or business, especially items of greater value. You should store the photos electronically, or with a friend or family member who lives away from the geographic area at risk.
Check on Fiduciary Bonds. Employers who use payroll service providers should aske the provider if they have a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.
Continuity of operations planning for businesses. How quickly your company can get back to business after a disaster often depends on emergency planning done today. Start planning now to improve the likelihood that your company will survive and recover. Review your emergency plans annually. Just as your business changes over time, so do your preparedness needs. When you hire new employees or when there are changes in how your company functions, you should update your plans and inform your people.
There are real benefits to being prepared for disasters. The following preparedness strategies are common to all disasters. You plan only once and are able to apply your plan to all types of hazards.
Get informed about hazards and emergencies and learn what to do for specific hazards.
Develop an emergency plan.
Learn where to seek shelter from all types of hazards.
Back up your computer data systems regularly.
Decide how you will communicate with employees, customers and others.
Use cell phones, walkie-talkies, or other devices that do not rely on electricity as a backup to your telecommunications system.
Collect and assemble a disaster supplies kit. Include a portable generator.
Identify the community warning systems and evacuation routes.
Include required information from community and school plans.
Practice and maintain your plan.
Update emergency plans annually. Emergency plans should be reviewed annually. Personal and business situations change over time and so do preparedness needs. Individual taxpayers should make sure they are saving documents everybody should keep including such things as W-2s, home closing statements and insurance records. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly, and employees should be informed of the changes.
Make sure you have a means of receiving severe weather information; if you have a NOAA Weather Radio, put fresh batteries in it. Make sure you know what you should do if threatening weather approaches.
Beware of scams and fraud. After a disaster, criminals and scammers try to take advantage of the generosity of taxpayers who want to help victims. Fraudulent schemes normally start with unsolicited contact by telephone, social media, email or in-person using a variety of tactics.
Some impersonate charities to get money or personal and financial information.
Some create bogus websites similar to legitimate charities to trick people to send money or provide financial information.
Others operate bogus charities and solicit money of financial information by telephone or email.
Limit on personal casualty and theft losses. Recent tax law changes limit losses that can be claimed on a federal tax return. For more information, call or visit our offices.