From fires burning thousands of acres of land to hurricanes making landfall, many parts of the country are affected by the devastation of natural disasters. These events are devastating for many communities and often leave individuals and businesses with a lot to rebuild in their wake. While regaining financial records and considering tax options should not be a top priority for those affected by natural disasters, learning how to reconstruct these records and knowing what tax options are available can help victims as they rebuild and recover.
Regaining Important Records
Important documents are often lost or destroyed when disaster strikes. Knowing where to start or who to contact to get a copy of these records can be overwhelming. Included below is a list of important documents that may need to be recovered and links or steps to take to get started in this process.1
Social Security Cards
Social security cards can be replaced using an online application and a state issued driver’s license or identification card. An application can also be completed at a local Social Security office.
Tax Records
Free tax return transcripts can be viewed online through the IRS Individual Online Account. Copies of tax transcripts from the IRS can also be ordered by mail over the phone by calling (800) 908-9946.
Passports
The Department of State will waive fees for replacing damaged or lost passports for qualifying disasters. Use the link to check disasters that qualify and for steps to apply for a new passport.
Property Records
Homeowners needing a new copy of their property records can contact the title company, escrow company, or bank that handled the purchase of their home or other property.
Inherited Property
If the property was inherited, check court records for probate values. If the property was inherited through a trust or an estate, people can also contact the attorney that handled the trust for a copy of the records.
Property Improvements
If improvements were made to the home prior to the disaster, contact the contractors or company that did the work or provided the materials and ask for statements that verify the labor and cost of the improvements. If this is not an option, friends and neighbors who saw the improvements can also provide a written description of the house before and after the improvements that were made.
Car Records
Car owners that may have lost their title or registration should contact their local Department of Motor Vehicles or Department of Licensing for assistance. Some states may require a completed affidavit of loss, along with a replacement fee.
Military Records
Copies of military service records can be ordered by contacting the National Archives and Records Administration and filing a request.
Tax Updates and Assistance After Disasters
The IRS usually provides relief for victims of declared federal disasters, as reported by the Federal Emergency Management Act (FEMA).
One of the most common relief measures proved by the IRS is a postponement of filing and payment deadlines for eligible taxpayers living in the affected area. This extension is often based on the damages assessed by FEMA and can vary for each disaster. Taxpayers in a federally declared disaster zone should regularly check for announcements by the IRS and follow the specific guidelines they publish related to the disaster. To see the current IRS disaster relief announcements, visit IRS News from Around the Nation or call the IRS Disaster Hotline at 1-866-562-5227.2
The IRS will also allow taxpayers affected by disasters to claim Disaster Area Losses or casualty and theft losses related to a disaster.
A Disaster Area Loss is defined by the IRS as “a loss that is attributable to a federally declared disaster that occurs in an area eligible for assistance pursuant to the Presidential declaration.”3
Disaster losses are not limited to individuals and personal-use property. These losses may also be claimed by small businesses and corporations affected. Claiming these losses often requires a fair market value assessment of the items damaged by the disaster.4 Regaining some of the important records above, such as property records or car records, can aid in the process of determining the fair market value.
There are many rules to follow when claiming disaster losses on taxes. Taxpayers should seek help from a tax professional if they are unsure about claiming these losses on their tax returns themselves. The IRS also has free tax return preparation services for taxpayers who qualify. Visit the IRS Volunteer Income Tax Assistance (VITA) page for more information and to see who qualifies.5
If you or someone you know needs assistance after a disaster, please visit the following links for more information.
- Internal Revenue Service. (2022, Oct 19). Rebuilding records after a natural disaster is an essential step in recovery. https://www.irs.gov/newsroom/rebuilding-records-after-a-natural-disaster-is-an-essential-step-in-recovery. ↩︎
- U.S. Department of the Treasury. Internal Revenue Service. (2023, Aug). Publication 3067: IRS Disaster Assistance, Federally Declared Disaster Area. Retrieved from https://www.irs.gov/pub/irs-pdf/p3067.pdf. ↩︎
- U.S. Department of the Treasury. Internal Revenue Service. (2024, Jan 10). Publication 547: Casualties, Disasters, and Thefts. Retrieved from https://www.irs.gov/pub/irs-pdf/p547.pdf. ↩︎
- U.S. Department of the Treasury. Internal Revenue Service. (2024, Jan 10). Publication 547: Casualties, Disasters, and Thefts. Retrieved from https://www.irs.gov/pub/irs-pdf/p547.pdf. ↩︎
- Internal Revenue Service. (2024, Aug 13). Free tax return preparation for qualifying taxpayers. https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers. ↩︎
