Planning – SmallBusiness.com

Review Disaster Resources on IRS.gov | Best Advice: Do it Before You Need Them

SmallBusiness.com — Wed, 01 Sep 2021 16:42:59 +0000

Natural disasters can – and do – happen at any time. Preparing in advance of a disaster can give people peace of mind after a disaster hits as they begin the recovery process. The website, IRS.gov, has information and resources that can help taxpayers before and after a disaster. These links are to content prepared by IRS.gov.

Tax Relief in Disaster Situations

This page features links to disaster resources. They walk taxpayers through the information that will help them after a disaster. This page also links to local news releases and frequently asked questions.

Around the Nation

This page highlights news specific to local areas. This includes disaster relief and tax provisions that affect certain states.

FAQs for Disaster Victims

This page contains information to help taxpayers with common tax-related questions after a disaster. Content is sorted by topic so users can easily find what they need.

Publication 2194, Disaster Resource Guide for Individuals and Businesses

This resource guide provides information for individuals and businesses affected by a disaster. It also covers the help available for disaster victims. The guide can help taxpayers claim unreimbursed casualty losses on property that was damaged or destroyed.

Publication 584, Casualty, Disaster, and Theft Loss Workbook

This workbook helps individual taxpayers figure the loss on their property because of a disaster, casualty or theft.

Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook

This workbook helps businesses figure the loss on business property because of a disaster, casualty or theft.

Publication 547, Casualties, Disasters, and Thefts

This publication explains the tax treatment of casualties, thefts and losses.

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IRS Disaster Help and Relief for Individuals and Small Businesses | 2021

SmallBusiness.com — Fri, 02 Jul 2021 17:13:16 +0000

Special tax law provisions may help taxpayers and businesses recover financially from the impact of a disaster, especially when the federal government declares their location to be a major disaster area. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes. Both individuals and businesses in a federally declared disaster area can get a faster refund by claiming losses related to the disaster on the tax return for the previous year, usually by filing an amended return. (This guide was prepared by the IRS.)

Overview

The IRS also offers audio presentations on Planning for Disaster. These presentations discuss business continuity planning, insurance coverage, recordkeeping, and other tips to stay in business after a major disaster.

Get the Latest Tax Relief Guidance in Disaster Situations
Recent special tax law provisions may help taxpayers recover financially from the impact of a major disaster in their location.

Tax Relief Help for the Coronavirus
IRS is providing a variety of tax relief for those affected by the Coronavirus. For the latest updates, check the Coronavirus Tax Relief page.

Preparing for Disasters
Are your home and/or business ready if a disaster strikes? Get information and suggestions or paperless recordkeeping, documenting assets and valuables.

Around the Nation
This section of our website provides IRS news specific to local areas, primarily disaster relief or tax provisions that affect certain states.

Tax Topic 515 – Casualty, Disaster, and Theft Losses
Casualty losses can result from the destruction of or damage to your property from any sudden, unexpected, and unusual event such as a flood, hurricane, tornado, fire, earthquake or even volcanic eruption.

For Individuals

FAQs for Disaster Victims
This section provides guidance for those affected by disasters and answers to frequently asked questions.

Reconstructing Your Records
Reconstructing records after a disaster may be essential for tax purposes, getting federal assistance or insurance reimbursement. After a disaster, taxpayers might need certain records to prove their loss. The more accurately the loss is estimated, the more loan and grant money there may be available.

Publication 2194, Disaster Resource Guide for Individuals and Businesses PDF
Publication 2194 is a resource guide designed to help individuals claim casualty losses on property that was damaged or destroyed by a natural disaster. This guide provides steps to take after a disaster so taxpayers can reconstruct their records and prove loss of personal use and business property. It also provides answers to common disaster tax questions and a list of forms and publications that are available to assist you with disaster tax issue

For Businesses

Publication 2194, Disaster Resource Guide for Individuals and Businesses PDF

Publication 2194 is a resource guide designed to help businesses claim casualty losses on property that was damaged or destroyed by a natural disaster. This guide provides steps to take after a disaster so taxpayers can reconstruct their records and prove loss of personal-use and business property. It also provides answers to common disaster tax questions and a list of forms and publications that are available to assist you with disaster tax issues.

Disaster Planning Video Presentations:

For Tax Professionals

Disaster Relief Resource Center for Tax Professionals

Through this resource center we address many of the questions received from tax professionals. We’ve included information published by the IRS, along with links to IRS partners who may offer additional assistance. Many of our partners have provided various resources to help the payroll and practitioner community to recover and get re-established in the event of a natural disaster.

For Charitable Organizations

Disaster Relief – Resources for Charities and Contributors
After a disaster or in other emergency hardship situations, people may be interested in using a charitable organization to help victims. The IRS provides several resources to help them accomplish this goal.

Publication 3833, Disaster Relief, Providing Assistance Through Charitable Organizations PDF
This publication describes how members of the public can use charitable organizations to provide assistance to victims of disasters or other emergency hardship situations.

Talk With the IRS

Contact My Local Office
IRS Taxpayer Assistance Centers are your one-stop resource for in-person tax help and solutions to tax problems, every business day.

Taxpayer Advocate Service
The Taxpayer Advocate is an independent organization within the IRS. They help taxpayers resolve problems with the IRS and recommend changes that will prevent the problems.

Other Government Agency Disaster Information

DisasterAssistance.gov
This is a one stop Web portal that consolidates information from 17 US Government Agencies where taxpayers can apply for Small Business Administration loans through online applications, receive referral information on forms of assistance that do not have online applications, or check the progress and status of their applications online.

Federal Emergency Management Agency (FEMA)
Federal disaster aid programs provided by the Federal Emergency Management Agency (FEMA) are available to citizens affected by major disasters.

Small Business Administration (SBA)
The U. S. Small Business Administration (SBA) is responsible for providing affordable, timely and accessible financial assistance to homeowners, renters and businesses of all sizes located in a declared disaster area. Financial assistance is available in the form of low-interest, long-term loans for losses that are not fully covered by insurance or other recoveries.

READY.gov
Learn how individuals and business can prepare for and respond to all kinds of disasters and emergencies.

GovBenefits.gov
GovBenefits.gov wants to let survivors and disaster relief workers know about the many disaster relief programs available. Perhaps you have suffered damage to a home or business, lost your job, or experienced crop damage due to a natural disaster. GovBenefits.gov has a variety of national benefit and assistance programs geared toward disaster recovery

IRS Forms and Publications

Publication 547, Casualties, Disasters and Thefts

Page Last Reviewed or Updated: December 12, 2020

Disaster Information From the IRS, SBA & USDA | 2019

Rex Hammock — Thu, 19 Sep 2019 15:38:22 +0000

As we’ve shared many times on SmallBusiness.com, natural disasters can – and do – happen at any time. Whether it’s a hurricane, fire, flood, earthquake or tornado, there are things people can do to prepare in advance of a disaster. When it comes to small business disaster information and resources provided by the U.S. government, the places to begin your research are the Internal Revenue Service, SBA Office of Disaster Assistance and the U.S. Department of Agriculture.

Disaster Information from the IRS

Reconstructing records after a disaster | A fact sheet to help people who are facing the challenge of reconstructing their financial records after a disaster. It covers how to properly document a tax-deductible loss.

Tax relief in disaster situations | (Including local news releases and frequently asked questions, FAQs)

This fact sheet features links to disaster resources. It walks taxpayers through the information that will help them after a disaster. The page also links to local news releases and frequently asked questions.

FAQs for disaster victims | Users will find links to several different pages of FAQs. Each set of FAQs is about a specific topic to help people after a disaster.

Publication 2194 | Disaster Resource Guide for Individuals and Businesses

This resource guide provides information for individuals and businesses affected by a disaster. It also covers the help available for disaster victims. The guide can help taxpayers claim unreimbursed casualty losses on a property that was damaged or destroyed.

Publication 584 | Casualty, Disaster, and Theft Loss Workbook

This workbook helps individual taxpayers figure the loss on their property because of a disaster, casualty or theft.

Publication 584-B | Business Casualty, Disaster, and Theft Loss Workbook

This workbook helps businesses figure the loss on the business property because of a disaster, casualty or theft.

Publication 547 | Casualties, Disasters and Thefts

This publication explains the tax treatment of casualties, thefts and losses.

Disaster Information From
The SBA Office of Disaster Assistance

Through its Office of Disaster Assistance (ODA), the Small Business Administration (SBA) is responsible for providing affordable, timely and accessible financial assistance to businesses of all sizes, private non-profit organizations, homeowners, and renters following a disaster.

Financial assistance is available in the form of low-interest, long-term loans. SBA’s disaster loans are the primary form of federal assistance for the repair and rebuilding of non-farm, private sector disaster losses. For this reason, the disaster loan program is the only form of SBA assistance not limited to small businesses. Disaster Assistance has been part of the agency since its inception in 1953.

Disaster Information and Resources from the USDA

It’s Small Business Prediction Season: Which Should You Believe?

Rex Hammock — Wed, 12 Dec 2018 16:08:42 +0000

Why? | Trends don’t happen in predictable blocks of time. Usually, the things we think are speeding past us are actually moving quite slow. A technology trend can take decades — 20 years, some experts say — to mature into something that’s viable, usable or real. (Have you seen a self-driving car on the street?)

The late scientist and futurist Roy Amara is credited with “Amara’s Law,” an adage about forecasting short-term and long-term effects of new technology:

We tend to overestimate the effect of a new technology in the short run and underestimate the effect in the long run.

Amara’s Law was later illustrated by a line chart from the research company, Gartner, that calls it “the hype cycle.”

If you are a small business owner, the trends that are going to impact your business will less likely be macro (the economy) and more likely, micro (public works plans to pave the street in front of your store).

Main Street small businesses should be aware of trends, but should not be obsessed with them. Your success, over time, will likely be impacted by some of the trends you’ll hear about this year — but that impact may not be felt for a while.

1. Be aware of trends | But don’t be obsessed

2. Be aware of their context | Certain trends can have an impact on one type of business, but not another. If a new piece of equipment can provide you with a competitive advantage in your industry, it’s time for you to learn all you can about that trend.

3. Be skeptical, but not in denial | Do you sell vacuum cleaners? Changing technology may not put you out of business today, but over time, you’ll have to keep up with changes in price and efficiency. I’m not picking on vacuum salespeople: the same is true for all of us in any business.

Ready Business Toolkits for Year-Round Disaster Planning | 2018

SmallBusiness.com — Tue, 31 Jul 2018 17:32:37 +0000

As we’ve stressed in numerous articles that are part of the SmallBusiness.com Guide to Disaster Planning, preparing for disasters helps you avoid being among the 20%-60% businesses that don’t reopen after a disaster.

Just think of the types of disasters that can occur.

Natural hazards like floods, hurricanes, tornadoes, volcano eruptions, and earthquakes.
Health hazards such as widespread and serious illnesses like the flu.
Human-caused hazards including accidents and acts of violence.
Technology-related hazards like power outages and equipment failure.

After the 9/11 tragedy, U.S. Homeland Security and several other government agencies were tasked to develop Ready Business (Ready.gov/business), a program to help business leaders develop preparedness plans for their companies.

Below are Ready.gov links to specific types of disasters and ways to prepare and respond.

Earthquake “QuakeSmart” Ready Business Toolkit

Unlike other natural disasters, earthquakes occur without warning and cannot be predicted. Most of the United States is at some risk for earthquakes, not just the West Coast, so it is important that you understand your risk, develop preparedness and mitigation plans, and take action.

Link | QuakeSmart Ready Business Toolkit
Link | Spanish Ready Business QuakeSmart Toolkit

Hurricane Ready Business Toolkit

Many parts of the United States, including Atlantic and Gulf of Mexico coastal areas, Hawaii, parts of the Southwest, Puerto Rico, the Pacific Coast, and the U.S. Virgin Islands and territories in the Pacific may be directly affected by heavy rains, strong winds, wind-driven rain, coastal and inland floods, tornadoes, and coastal storm surges resulting from tropical storms and hurricanes. The Ready Business Hurricane Toolkit helps leaders take action to protect employees, protect customers, and help ensure business continuity as well.

Link | Hurricane Ready Business Toolkit
Link | Spanish Ready Business Hurricane Toolkit

Inland Flooding Ready Business Toolkit

Most of the United States is at some risk for flooding, so it is important that organizations, businesses, and community groups understand the potential impacts.

Link | Inland Flooding Ready Business Toolkit
Link | Spanish Ready Business Inland Flooding Toolkit

Power Outage Ready Business Toolkit

While a Power Outage may not seem as dangerous as a tornado or earthquake, they can still cause damage to homes, businesses and communities. Power Outages cost the U.S. economy $20 billion and $55 billion annually and continue to increase each year (CRS, 2012).

Link | Power Outage Ready Business Toolkit
Link | Spanish Ready Business Power Outages Toolkit

Severe Wind/Tornado Ready Business Toolkit

It is not just in Tornado Alley. Most of the United States is at some risk for severe wind and tornadoes

Link | Severe Wind Tornado Ready Business Toolkit
Link | Spanish Ready Business Severe Wind Tornado Toolkit

Links to additional Ready Business resources

Hurricane Harvey | Spencer Platt / GettyImages
Redding Fire | Terray Sylvester / GettyImages

Hurricane Harvey Recovery Assistance For Small Businesses From the SBA | 2017

SmallBusiness.com — Fri, 01 Sep 2017 16:30:50 +0000

During a disaster like Hurricane Harvey and its massive flooding, the U.S. Small Business Administration becomes the hub agency for services targeting small business; even services beyond its primary role in lending. Because of its experience with loans and working with banks, it also takes on certain responsibilities beyond those related to small businesses. Here is a list related to Harvey disaster recovery (or any major declared disaster) where you can find links to such services.

First look over the information on this page to learn more about the various loans, grants and services that may be available to your business. Then take these following steps.

When you’re ready to think about next steps, start by contacting the Federal Emergency Management Agency (FEMA) for recovery assistance in the form of grants. Register for FEMA assistance at www.disasterassistance.gov or call 1-800-621-FEMA (3362).
For more information about SBA Disaster Loans, visit disasterloan.sba.gov. The SBA’s Customer Service Center is also available to provide assistance at 1-800-659-2955 or by e-mail at disastercustomerservice@sba.gov(link sends e-mail).`

Note: The SBA is providing an automatic 12-month deferment of principal and interest payments for SBA-serviced business and disaster loans that were in “regular servicing” status on August 25, 2017, in those primary counties designated as Federal disaster areas. (Read more…)

Disaster recovery-assistance grants and SBA disaster loans

The SBA offers low-interest, long-term disaster loans to the following:

Small businesses of all sizes
Private non-profit organizations
Homeowners, and renters to repair or replace uninsured/underinsured disaster damaged property
- Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.

The SBA will be alongside FEMA at Disaster and Business Recovery Centers, providing assistance to disaster survivors. At the centers, disaster survivors will be able to apply in person and get counseling on the next steps toward recovery.

SBA Disaster Loan Program

SBA Disaster Loan Program FAQ

How to Apply for an SBA Disaster loan

Apply online, in-person at a disaster center, or by mail. A loan officer will determine your eligibility during processing, after reviewing any insurance or other recoveries. SBA can make a loan while your insurance recovery is pending.

As a business of any size, you may borrow up to $2 million for physical damage.
As a small business, small agricultural cooperative, small business engaged in aquaculture, or private non-profit organization you may borrow up to $2 million for Economic Injury.
As a small business, you may apply for a maximum business loan (physical and/or economic injury) of $2 million.
As a homeowner you may borrow up to $200,000 to repair/replace your disaster damaged primary residence.
As a homeowner or renter, you may borrow up to $40,000 to repair/replace damaged personal property.

For more information about SBA Disaster Loans, visit disasterloan.sba.gov. The SBA’s Customer Service Center is also available to provide assistance at 1-800-659-2955 or by e-mail at disastercustomerservice@sba.gov(link sends e-mail).

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Business Owners Admit They Aren’t Prepared for Disasters, But Know They Should Be | 2017

SmallBusiness.com — Wed, 23 Aug 2017 14:23:50 +0000

In a newly released Nationwide Insurance survey of small business owners, over two-thirds of the participants said they believe it is critical that businesses prepare for cyberattacks, disasters, and unplanned succession. Despite that belief, a majority of those surveyed admitted they lack such preparation.

Small business disaster denial?

Most business owners say it’s important to plan for cyberattacks, natural disasters, and unplanned business succession. But the vast majority of owners report they don’t have formal plans in place, even as catastrophic weather events continue to rise and ransomware attacks become more common.

Cyber attacks

83 % | (Percentage of business) owners who say it’s important to establish security practices and policies to protect sensitive information50 percent say they have established security practices to protect sensitive information.
50%| Owners who say they actually have established such security practices and policies.

Disasters

64% | Owners who say it’s important to create a preparedness program
23% | Owners who say they have actually created one.

Succession Plan

65% | Owners who say its important to choose a successor for their business
37 % | Owners who actually have a business succession plan in place.

“Small business owners often believe the myth that ‘it could never happen to me,'” said Mark Berven, president of property and casualty for Nationwide. ”

VIA | Nationwide.com

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Small Business Solar Eclipse Ideas To File Away for 2023, 2024 & 2045

SmallBusiness.com — Tue, 22 Aug 2017 17:32:12 +0000

Yesterday, it finally happened for a lot of small businesses and small towns across the U.S. As we outlined earlier, the 2017 total solar eclipse was a windfall for lots of businesses with pop-up entrepreneurial ideas. Did your business miss the opportunity? Were you outside the path of totality? If so, here are some things we learned that you can file away for the future dates below.

Business lessons from a total eclipse

Don’t fight it, embrace it

It’s hard to compete with a once-in-a-lifetime event. This is especially true if the event takes place in the middle of a day that’s before or after the weekend. Schools may close, or not. If you do plan to stay open, you’ll find very few customers, if any, show up during the hours leading up to the eclipse. Every business is different, so do what’s right for you.

Include a party

Reports from across the country are similar to what we witnessed. At the precise time of totality, people scream and shout and use up left over July 4th fireworks. However, they quickly stop doing anything as the awe sets in and people start saying “wow” in various ways.

Print a tee-shirt

We mentioned this in our previous post, but it was even more evident on the day of the eclipse. People had tee shirts celebrating the event that ranged from really bad puns to wearable art. Tee-shirts were a major part of business-related eclipse parties.

Everything you do should be round and include the word “sun” or “moon”

If you have a party or not, the food-of-the-day is “round.” We saw round food everywhere. The obvious: Oreo, Moon Pies. Clever not-so-obvious: Corona and local craft beers with the words “blue” or “moon” or “sun” in their name.

Pop-up camp grounds

Because the 2017 path of totality was primarily a rural and small town event, some of the most clever small business ideas involved transportation and temporary lodging. Lots of clever campgrounds that lasted just a few days. (Cautionary note: The zoning regulations, insurance, or other types of codes necessary to operate a camping facility — even for overnight — should be checked.)

A total eclipse is very different from a partial eclipse

To be honest, if we didn’t live in 2017’s path of totality, we would not have driven a hundred miles or more to witness it. Big mistake. There is something magical that happens when the sun goes completely dark in the middle of the day. If you see one, there’s a good chance you’ll turn into an eclipse chaser for a future one.

Future dates to try out your eclipse business ideas (U.S.)

October 14, 2023 | While not a solar eclipse like that witnessed in 2017, there will be an “annular” or “ring of fire” eclipse on Oct. 14, 2023. During an annular solar eclipse, the moon is farther away from the Earth, so it is not quite large enough to block out all of the light from the sun. It has the nickname “Ring of Fire Eclipse” due to its large corona. The 2023 annular eclipse will be visible from California to Texas and across portions of Central America and South America.

Annular eclipse, 2012. Wikipedia

April 8, 2024 | It will look similar to the 2017 eclipse, but unlike the 2017 eclipse, the path of totality in 2024 will include several large cities including Dallas, Little Rock, Arkansas, Indianapolis, Cleveland, Buffalo and Montreal. The path will also include a few locations that witnessed the 2017 eclipse, including Carbondale, Illinois; Cape Girardeau, Missouri; and Paducah, Kentucky.

Path of Totality for 2024 eclipse. Click for Google map.

August 12, 2045 | This “mother of all U.S. solar eclipses” will once again track across the United States, this time from Northern California to Florida. More impressive: During the 2045 eclipse, the moon will block out the sun completely for over six minutes, the longest-lasting total eclipse experienced anywhere in the world until 2114.

Bottomline

Plan ahead and party.

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5 Ways to Refresh Your Small Business Strategy

SmallBusiness.com — Tue, 28 Mar 2017 16:11:40 +0000

Writing for SBA.gov, business planner extraordinaire Tim Berry suggests that following five simple “business refresh” ideas will help you manage your business goals, growth, and execution. These are condensed versions of his insightful suggestions.

1 | Refresh Your Strategy Framework

Step back from the day-to-day details and look at the long-term strategy of your business.

Think about your identity as a business. That’s what makes it unique. It’s strengths and weaknesses, core competence, history, and long-term branding.
Think about your target market. Think about an ideal customer. Remind yourself who isn’t a customer, and why. Don’t try to please everybody. Try to please your specific target buyers.
Think about your business offering. That’s what you do, as a business; what you sell. Relate that to your identity. Relate that to your target market.

2 | Refresh Your Tactics

Tactics are how you execute strategy in everyday business. They are decisions you make and follow about business basics including pricing, delivery, channels, promotion, personnel, policies, and so forth.

3 | Refresh the Key Metrics

Managing by key metrics gives you something to shoot for that is objective and measurable. You can track progress over time. And you make good and bad results visible, and actionable.

4 | Refresh Your Milestones

Milestones are events, achievements, and accomplishments that a business can work towards. Setting milestones helps people work better towards reachable, manageable goals rather than just vague ideas about the future.

5 | Refresh Your Forecasts

All business owners benefit from a simple forecast. It’s about getting your assumptions into an organized form, understanding the drivers, and setting up something you can track monthly with plan vs. actual analysis that leads to revising and refreshing often.

VIA | SBA.gov “Five Ways to Give Your Business A Strategic Refresh” by Tim Berry

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4 Things You Must Include in Any Business Plan

SmallBusiness.com — Wed, 15 Feb 2017 21:10:05 +0000

If you’re considering starting a business, one of the first things you’ll need to do is develop a business plan. However, business plans come in various flavors. There’s the plan you develop to prove to yourself and others that your great idea can actually make money. There’s the plan the bank wants to see if they are going to consider lending you money (even if you provide collateral). And there’s the plan you need if you are seeking outside investors (9.8 out of 10.0 degree of difficulty if this is your first start-up.).

No matter what type of business your plan is for, there are certain parts of a business plan that must be included (or followed), according to business plan expert, Tim Berry, founder of Palo Alto Sofware, author of The Lean Business Plan and creator of LivePlan. Here are his four must-haves:

1 | Projections are not important for their actual numbers as much as for their presentation of drivers, relationships between growth and spending, key spending priorities, sales aspirations, and assumptions related to cash flow.

They have to be solid and integrated, but accuracy is much more a matter of transparent assumptions than accurately predicting the future.

2 | All business plans should include these components.

Strategy
Tactics
Milestones
Tasks
Assumptions
Essential numbers
Projected sales
Direct costs
Expenses
Cash flow

3 | All business plans should provide the ability to measure accountability and track results.

4 | All business plans should be reviewed and revised at least monthly.

The review should look for assumptions that need to be changed. The review should analyze the projected results vs. actual results. Revisions should be based on the variation between the two.

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