Unfiled Tax Returns and Disaster Planning

You may think that having unfiled tax returns is a disaster in itself, but what I have in mind is the effect on unfiled tax returns, and the data needed to file an accurate tax return when you are the victim of a natural disaster.

Storms and natual disasters pose serious tax issues for taxpayers and tax attorneys alike. As a result of this, we encourage taxpayers to safegaurd their tax and business records against natual disasters by taking some common sense steps.

1. Create a electronic copy of the records. This record should be kept in a safe and way from the original set of documents. Cloud storage may be the best solution. Maintaining a back up copy of bank statements, tax returns, receipts, in case there is a future audit.

2. Document your valuables. Phtograph or video the contents of your home in case of a disaster. The IRS has loss workbook publication 584, that can help organize the items, room by room.

3. For employers, if you use an outside payroll service, check their fiduciary bond. The bond will protect you in the event the payroll provider goes out of business and the withheld payroll taxes they have from your employees is lost.

As you can see, if you have unfiled tax returns, it is best to be extra careful to save the tax data needed to prepare the tax returns, when they are prepared by a New York Tax Attorney. We can often obtain your yearly income informaiton from the IRS, NYS Tax, etc, but they would have no expense information that would help with this tax problem.