Wildfires and Storms: Tax Relief—A Joke

Last week, the IRS provided tax relief to taxpayers who lived in Hawaii, where wildfires caused disaster.

It also provided tax relief to taxpayers in Illinois and Mississippi who lived in areas affected by the severe storms that occurred during June and July of this year.

What Does IRS Tax Relief Mean?

Not much. With the relief, you get to file and pay your taxes later. For example, individuals and businesses that lived or operated in Maui and other affected Hawaii counties have until February 15, 2024, to file returns and pay any taxes that would have been due after August 8, 2023, and before February 15, 2024.

Similar rules apply in Illinois, Mississippi, and the many other disaster areas where the IRS has granted tax relief.

So, whether you suffered a disaster or not, the big question for you is: Do you have the tax records you need to file your return?

In Hawaii, you could have lost all your records to the fire.

Records Destroyed

Too bad. The IRS requires documentation of your deductions. The fact that a fire destroyed your records does not change that rule.

Practical Help

Two things here:

  1. If the IRS selects your tax return for an audit and your tax records are not what they need to be.
  2. Protect your tax records so they survive a disaster. This sounds hard, and to some extent it is, but it’s simple compared to the reconstruction of the records you need.

Protecting your records to survive a disaster might involve fireproof and waterproof safes, fireproof file cabinets, and flood barriers.

Here’s a possible easy solution: Go all digital. To get this done, consider:

  • Paying all bills using credit cards and bank transfers such as ACH and bill pay.<-li>
  • Using a scanner that will convert documents to PDFs that have readable text, and storing those PDFs in the cloud.
  • Using Copernic Desktop Search software (or a similar program) to locate readable PDF files, so you
    don’t need an extensive filing system.

When you are all digital, the cloud is your file cabinet. We use Dropbox for most of our cloud files. There are lots of options. One big trick: keep it simple.

In times of crisis, like the havoc wreaked by wildfires and severe storms, the IRS’s tax relief measures can indeed feel like a lifeline, offering much-needed financial breathing space. But, don’t forget, the devil’s in the details – those tax records of yours, even if they’ve met an unfortunate fate, still play a crucial role.

Feeling a bit overwhelmed by this financial jigsaw puzzle? Or perhaps you’ve got questions about how to navigate these choppy tax relief waters? Well, here’s where Morris + D’Angelo steps in as your guiding star.

Don’t let the complexities of tax-saving techniques hold you back. Reach out to Morris + D’Angelo today to discover how their expertise can be your ticket to financial success! Your peace of mind is just a click away.

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo

Daniel Morris
Daniel frequently provides Media Content via Workshops, Podcasts, and Printed Articles on topics like Bitcoin and Cryptocurrency, Wealth Preservation and Planning, Global Banking, and many other high-level financial topics that serve and demonstrate the Value of our Global Network that should be of interest to those who need Private High-Wealth Services.

If you would like Daniel to speak to you or your Professional Group and bring clarity about the new frontier of the new business tax law changes. Please contact us.

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Daniel Morris, Dan Morris, CPA, Portland Oregon, Dragon Slayer

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