8 Most Common Questions Tax Preparers Say They Get From Last-Minute Filers

The tax-filing deadline is right around the corner. As April 15 approaches, you might want to make money moves that ensure you limit your tax liabilities as much as possible.

Before preparing your own return, it might help to know what is on the minds of other taxpayers. Tax preparers say these are the last-minute tax questions they hear most often from clients.

Because cryptocurrency is a relatively new asset class, many taxpayers wonder if they have to report crypto transactions to the IRS.

The answer is "yes," according to Chad Cummings, a certified public accountant and lawyer at Cummings & Cummings Law in Bonita Springs, Florida.

"The IRS treats cryptocurrency as property, so any transactions — even forgotten ones — must be reported," Cummings says.

Cummings says you need to calculate gains or losses promptly, amend previous returns if needed, and consult IRS Notice 2014-21 for guidance.

If you relocate to a new state that is different from where your company is based, your taxes can get complicated quickly.

Depending on the situation, it's possible to face an unexpected income tax bill from either the state you live in or the state where your company is based.

Cummings says some states "aggressively tax" remote workers who maintain even minimal connections, such as visits to an employer's offices.

"Verify residency rules in both your former and new states immediately to avoid surprise liabilities," he says.

If you are facing a hefty tax bill, paying the entire balance upfront might not be feasible. Luckily, a payment plan can be an option.

"If there is a balance, the IRS allows payment plans," says Ashley Morgan, attorney and owner at Ashley F. Morgan Law in Herndon, Virginia.

If you have no balances for prior years, you typically can get into a 72-month payment plan just by asking, Morgan says. Penalties and interest continue to accrue, so paying the taxes fast is advisable.

"We typically recommend getting into a payment plan for the lowest amount possible and pay more whenever you can," Herndon says.

If you lived in two states during the tax year, it can make filing your taxes more complex.

"Moving can affect your state tax filings, especially if you moved to a state with different tax laws," says Laurie Smith, tax partner at Wiss & Co. in Florham Park, New Jersey

You may need to file part-year resident returns in both states and report income earned while you were a resident of each state, Smith says.

"It's important to update your address with the IRS and your state tax authorities to ensure you receive any correspondence related to your tax filings, and any refunds," she says.

If you hope to give away some money in hopes of reducing your taxable income, you probably need to look into other options.

"No, gifting does not directly lower your taxable income or provide a last-minute deduction," Cummings says.

Gifts might reduce future estate taxes, but they do not impact current-year income taxes, he adds. "Plan your gifting strategy strategically rather than impulsively at tax time," Cummings says.

No one wants to face a bigger tax bill. But depending on your situation, it's possible you'll owe more during a particular year.

"There could be several reasons why you owe more tax this year," Smith says. "Changes in your income, deductions, or credits can impact your tax liability."

Shifts in tax laws or withholding adjustments can also contribute to an increase in what you owe, Smith says.

"Reviewing your tax return and consulting with a CPA can help you understand the specific factors affecting your tax liability," she says.

When you file an extension, it gives you more time to prepare and submit your tax return. However, it doesn't mean you can delay in paying the IRS.

Instead, you'll still need to pay what you expect to owe by the deadline.

"Usually, the biggest last-minute issue is just getting clients to understand they need to pay tax in before the deadline when filing an extension," says Crystal Stranger, a Boulder, Colorado-based lawyer and CEO of Optic Tax.

Stranger says it can be a "real problem" if another tax firm filed an extension automatically on behalf of a taxpayer. "Then, you can't make a payment with the extension when you file on their behalf, and this can cause major upsets," she says.

If you want to pay less in taxes, getting strategic with a competent CPA can help.

"Consulting with a CPA can help you identify the best strategies for your situation," says Smith.

Strategies that are still available to those who have not yet filed include making deductible IRA contributions by April 15, she says. Or, if applicable, contribute to a self-employed IRA plan, which you can do until the tax due date of your return, including extensions.

Throughout the tax-filing process, it's normal to have questions. Keeping up with your tax obligations is a crucial way to get ahead financially.

If you can't find answers on your own, consider enlisting a tax professional to seamlessly guide you through preparing this year's return.