Disaster Resource Guide for Individuals and Businesses
Introduction
This resource guide provides information to individuals and businesses affected by a federally-declared disaster. It also covers the assistance available to disaster victims. This guide can also help taxpayers claim unreimbursed casualty losses on property that was damaged or destroyed.
A federally declared disaster is a disaster that took place in an area declared by the President to be eligible for federal assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. A list of areas warranting public or individual assistance (or both) is available at the Federal Emergency Management Agency (FEMA) web site at www.fema.gov.
Note: All telephone numbers and web links are current as of the date of publication but are subject to change.
IRS Disaster Assistance
Federally Declared Disaster
Area You may be able to deduct the loss or partial loss of personal and business use property on your individual federal income tax return for the year you incurred the loss. If you paid taxes in the tax year immediately preceding the tax year in which the federally declared disaster occurred, you can elect to deduct your loss on a Form 1040X, (Amended U.S. Individual Income Tax Return) for the prior year instead of waiting to file your current year return. This will allow you to receive a refund of some or all of the taxes paid on your prior year return.
You can request copies of IRS account transcripts, or previously filed federal tax returns free of charge, when you submit Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return. Just write the name of the disaster in red at the top of the form before submitting (for example, Hurricane Harvey). If you need additional forms or publications, there are several ways you can obtain them. You can download forms from www.irs.gov.
You can also order forms or publications at no cost by calling 1-800-829-3676. If you need additional tax assistance, please call 1-800-829-1040.
IRS Hotline
Assistors are available Monday through Friday to provide explanations on filing and payment relief that may have been provided by IRS due to a disaster. You may call the Disaster Assistance Hotline at 1-866-562-5227. Please have your own interpreter, if needed, when calling the Hotline.
IRS Taxpayer Assistance Centers
IRS personnel may be able to provide face-to-face assistance on disaster related issues at your local IRS office. Access https://www.irs.gov/help/contact-your-local-irs-office to find a Taxpayer Assistance Center in your area.
Disaster Information on the Web
To access the latest disaster tax information on www.irs.gov, use the key word “disasters.” The Disaster Assistance Portal can also help you find disaster assistance that meets your personal needs. You can locate over 60 forms of assistance from 17 federal agencies. Go to http://www.disasterassistance.gov/ for more information.
Electronic IRS
Each year the IRS increases the availability of electronic options on its website. To help reduce your burden and improve the timeliness and accuracy of tax returns, go to irs.gov. A few of the electronic options include “Where’s My Refund?” where you can check the status of your refund, find an IRS e-file provider, check your eligibility for credits and deductions, and search for tax forms and instructions. You can also, check your refund status, make a payment, find free tax preparation assistance, by downloading the IRS official mobile app, IRS2Go, at https://www.irs.gov/ newsroom/irs2goapp.
FEMA
You may contact FEMA for instructions 7 days a week to apply for assistance on the FEMA webpage at www.fema. gov or, by calling 1-800-621-3362 (TTY 1-800-462-7585).
Plan/Prepare
Ready.gov provides tips for preparing and planning for a disaster. Go to www.ready.gov for information.
Recovery
The Small Business Administration provides low interest disaster loans to homeowners, renters, businesses of all sizes and private, nonprofit organizations to repair or replace real estate, personal property, machinery, equipment, inventory, and business assets that have been damaged or destroyed in a declared disaster. For more information, visit SBA’s website at www.sba.gov and click on “Funding Programs.”
Choosing a Tax Preparer
Here are a few points to keep in mind when someone else prepares your return:
Check the Preparer’s Qualifications. New regulations require all paid tax return preparers to have a Preparer Tax Identification Number (PTIN). Tax return preparers have differing levels of skills, education and expertise. In addition to making sure they have a PTIN, ask if the preparer is affiliated with a professional organization and attends continuing education classes. The IRS provides a searchable directory is intended to help you with your choice by providing a listing of preparers in your area who currently hold professional credentials recognized by the IRS or who hold an Annual Filing Season Program Record of Completion. You can search the Directory of Federal Tax Return Preparers at https://irs.treasury.gov/rpo/rpo.jsf.
Check the Preparer’s History. Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.
Ask about Service Fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers can. Also, always make sure any refund due is sent to you or deposited into an account in your name. Under no circumstances should all or part of your refund be directly deposited into a preparer’s bank account
Ask to E-file Your Return. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return. More than 1 billion individual tax returns have been safely and securely processed since the debut of electronic filing in 1990. Make sure your preparer offers IRS e-file
Make Sure the Preparer is Accessible. Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise.
Provide all Records and Receipts needed to prepare your return. Reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions, and other items. Do not use a preparer who is willing to electronically file your return before you receive your Form W-2 using your last pay stub. This is against IRS e-file rules.
Never Sign a Blank Return. Avoid tax preparers that ask you to sign a blank tax form
Review Your Return Before Signing. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
Ensure the Preparer Signs and Includes Their PTIN. A paid preparer must sign the return and include his or her PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return.
Report Abusive Tax Preparers to the IRS. Most tax return preparers are honest and provide great service to their clients; however, some preparers are dishonest. Report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or changed the return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit. You can get these forms on IRS.gov at any time.
Every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov at https://www.irs.gov/ taxpayer-bill-of-rights.
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