As Tax Day approaches, most of the focus is on paperwork and deadlines. But for disciplined planners, the final stretch before filing is not just about compliance; it is about reinforcing long-term wealth management structure.
According to Jeffrey Fratarcangeli, founder and CEO of Fratarcangeli Wealth Management, there are still a few levers that could impact 2025 returns, even late in the cycle. The key is knowing what is actually available and avoiding emotional, last-minute decisions.
Below are three core best practices Fratarcangeli emphasizes during the final stretch before filing.
Understand what can still be done before you file
For business owners and individuals alike, timing matters.
“You have the ability, up until the date you file your taxes, to make certain contributions,” Fratarcangeli explains. “That includes profit-sharing contributions to retirement plans and, depending on income, potentially a deductible IRA.”
These are not aggressive maneuvers. They are structural tools embedded in the system. The discipline lies in recognizing that these opportunities exist and planning ahead, rather than scrambling to maximize them at the last minute.
Liquidity is not optional in the final weeks
One of the most common behavioral mistakes Fratarcangeli sees in the weeks leading up to Tax Day in mid-April is that people do not have enough funds set aside to pay the taxes they may owe.
“Failing to set aside sufficient liquidity is a big error,” he explains. “Taxes and essential expenses should be fully accounted for before making any discretionary purchases or investments.”
For business owners and individuals with variable income, this is especially critical. Liquidity in the weeks leading up to filing is not a luxury; it is protection.
If taxes are due and funds are not readily available, people are often forced into reactive decisions, selling assets, borrowing unnecessarily or disrupting longer-term wealth management plans.
The better approach, Fratarcangeli emphasizes, is consistent monthly discipline.
“You should be setting aside money for taxes every month with your income, rather than having to come up with it at the end,” he says.
Coordination with CPAs and advisors still matters late in the season
Even if a return is nearly finalized, coordination between financial advisors and CPAs remains essential.
Fratarcangeli points to an example that can materially affect tax filings: amended 1099 forms.
“Many times, 1099s come out, and then before the tax deadline, they send out amendments,” he explains. “You need to make sure your tax professionals are aware of any amendments.”
Another frequent oversight involves cost basis reporting. If a sale is reported without cost basis information attached, it may be treated as fully taxable.
“Many times, if a sale does not have a cost basis, it is assumed to be fully taxable,” Fratarcangeli says. “If you have a sale of something with no cost basis, the CPAs will just assume it’s all taxable. You have to double-check that.”
Preparation beats panic every time
Tax Day should not come as a surprise, and it should not require scrambling.
Last-minute moves such as retirement plan contributions may still be possible, but they are most effective when part of a broader, disciplined financial framework.
While individuals should coordinate directly with their CPAs and financial advisors to evaluate what applies to their specific circumstances, the underlying principle is universal: Set funds aside consistently to maintain liquidity, double-check all documentation and coordinate early.
“You don’t want to be forced into decisions in the final weeks,” Fratarcangeli says. “Preparation always puts you in a stronger position than a last-minute reaction.”
For more insight from Jeffrey Fratarcangeli, visit www.fratarcangeliwealth.com.
