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    Emergency-preparedness, tax-wise and otherwise

    Consumer Reports News: July 16, 2010 01:19 PM

    As we're in the season of hurricanes, floods and natural disasters of all kinds, now is the time to consider your family's disaster plan. While you stockpile bottled water and put fresh batteries in your flashlights, also consider the safety of your financial records.  The IRS recently offered tips for keeping your financial records safe. We'd like to add a few of our own.

    • Go paperless. If you haven't already, consider signing up for paperless statements from your bank and other financial institutions. (You may also avoid fees for paper statements— a troubling banking trend.) Scan your tax returns and save them to a portable drive that you can then store in a safe place. While you're at it, Consumer Reports Money Adviser tells you which papers to keep and which to toss.

    • Make a record. Take photos and/or video of your valuables and store in a safe place away from home. This is important for insurance claims. The Insurance Information Institute, the trade organization representing the property and casualty insurance industry, offers a free home-inventory tool at KnowYourStuff.org. The IRS Disaster Losses Kit (PDF) provides information on filing disaster-related tax documents.

    •Have a current emergency plan. Aside from having your important papers in a safe place, you'll want to know what you should do if a storm is on the way. Read our how-to guide so you're prepared for any emergency. And check out why you might need flood insurance.

    • Contact the IRS if you've lost tax returns in a disaster. You can get copies of previously filed federal tax returns (PDF) for free. The agency also lists recent tax relief information by geographical area.

    For more information, type "Preparing for a Disaster" into the search box on the IRS.gov home page. —Desiree Ferenczi

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