Jimenez Tax Consulting LLC

Jimenez Tax Consulting LLC Jimenez Tax Consulting LLC provides a full suite of financial services including accounting, tax planning and preparation.

Anne Jimenez is a strong detailed Senior Financial Analyst who has been in the Financial Industry for 45 years. She has worked at major Wall Street Firms such as Merrill Lynch, A.G. Edwards, Prudential managing office staff, Operations Manager and many other various positions throughout her career.

06/09/2026

Reducing IRS Audit Risk for Small Businesses

When business owners think about risk, they often focus on market pressures or operational challenges. An IRS audit usually isn’t top of mind — but it can be costly, disruptive and time-consuming. Although some taxpayers are randomly selected for an audit, many audits occur because the IRS has identified certain patterns or inconsistencies. Understanding where these risks typically arise can help you limit your business’s exposure.

5 Key Audit Risk Areas
The following risk areas can result in additional IRS scrutiny:

1. Inconsistent or unreported income. Drastic shifts in revenue from one year to the next can prompt IRS attention, especially when they conflict with industry trends or economic conditions. Income mismatches identified through third‑party reporting — including 1099 forms and payment‑platform data — may lead to follow‑up inquiries. Accurate records are critical when income fluctuates significantly.

2. Excessive or unusual deductions. Deductions that appear disproportionate to income or far outside industry norms may raise IRS concerns. Only expenses that are “ordinary and necessary” for business operations are deductible. Personal expenses — including personal vehicle use, clothing and nonbusiness travel — are common audit issues. Careful records are especially important for meal, travel and vehicle-related deductions.

3. Repeated business losses. Consistently reporting losses may signal that a business isn’t operated for profit. While legitimate losses occur — particularly during startup phases or economic downturns — ongoing losses should be supported by strong documentation, financial planning and a clear profit motive.

4. Weak recordkeeping practices. Incomplete or disorganized records increase both audit risk and audit difficulty. Missing receipts, inconsistent financial statements or unclear bookkeeping practices can jeopardize deductions. Digital accounting tools make it easier and more defensible than ever to maintain accurate, well-organized records.

5. Worker misclassification. Misclassifying employees as contractors can result in back payroll taxes, penalties and interest. The key factor is the degree of control the business exercises over how the work is performed, not how the worker is paid or labeled.

Staying Ahead of Audit Risk
No business is immune to audit risk, but consistent reporting, accurate records and informed guidance can significantly reduce exposure — and put your business in a better position if you are audited. Contact the office to help your business stay compliant, identify potential issues early and respond effectively if the IRS requests information.

05/25/2026

This Memorial Day we pause to honor and remember the brave men and women who made the ultimate sacrifice for our freedom. We also hold close the memory of our beloved family members who have passed away, for all my Great Grandparents, Grandparents, Aunts, Uncles and Cousins who are now gone, we cherish their love, wisdom and legacy that continue to guide us every day.
Today, I am especially grateful for my present family who have served or are still serving, dear friends, valued clients, and all those who continue to support and uplift one another through life's journey. Your strength, loyalty, and kindness are deeply appreciated.
To all active military members, veterans, and the families who stand beside them - thank you for your courage, dedication and sacrifice. May we never forget the cost of freedom and the heroes who protect it.
Wishing everyone a safe, peaceful and meaningful Memorial Day.

05/04/2026

Just a reminder, Tax Season isn't quite over yet but the first quarter of 2026 is and you need to start getting your bookkeeping documents in so we don't fall behind. Have a great night!

04/27/2026

Okay my Friends for those of you in Florida with a business you have 3 days left to file Annual Report at the regular price. As of May 1st you will have to pay 400 plus to file. So get them in asap.

04/08/2026

Common Growth Mistakes Small Businesses Make

A recent survey found that 45% of small businesses reported growth, but 78% wanted to grow. This January 2026 data from Intuit QuickBooks Small Business Insights suggests that many small businesses are struggling to achieve their expansion goals. Small businesses usually don’t have extra cash, people or time to absorb mistakes. One wrong move can strain cash flow, overwhelm staff or stall momentum. The good news? Many growth missteps are predictable and preventable.

Growing Too Fast Without a Plan
Growth is often viewed as the ultimate goal. More revenue, more customers and expanded products and/or services can signal success. But growth can easily become unsustainable.

One of the most common mistakes is expanding too quickly without a clear operational plan. A sudden increase in customers or projects can overwhelm staff, stress systems and weaken service quality. Before scaling, evaluate capacity, staffing needs and process efficiency. Phased growth, supported by documented procedures, helps reduce disruption and protect profitability.

Overlooking Cash Flow
Cash flow mismanagement is another common issue. The Small Business Insights survey found that 45% of small businesses reported cash flow problems.

Revenue growth doesn’t automatically translate into financial stability. Higher sales often lead to higher expenses, including payroll, software, inventory and marketing. Without careful forecasting, you could find your business short on working capital despite strong top-line performance. Regularly monitoring cash flow and building reserves before major investments can help avoid financial stress.

Staffing and Management Stumbles
Hiring decisions are critical to sustainable growth. Bringing on employees without clearly defined roles can create confusion and unnecessary costs. Conversely, delaying hires too long can lead to burnout and reduced productivity. Thoughtful workforce planning helps ensure that new team members contribute to measurable business outcomes.

Additionally, as your business grows, your leadership style should evolve. Owners who try to control every decision often become bottlenecks. Delegating responsibilities and empowering staff frees you to focus on strategy rather than daily tasks.

Moving Forward
Growth is about building a business that can generate more revenue without sacrificing stability, service or financial health. If you need assistance, contact the office.

04/08/2026

What's New for Retirement Catch-Up Contributions in 2026

Beginning in 2026, a significant change to retirement plan catch-up contributions takes effect. Part of the 2022 Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act, the change affects higher-income taxpayers age 50 and older who contribute to certain types of employer-sponsored retirement plans.

Catch-Up Contribution Basics
For years, taxpayers age 50 or older have been able to make catch-up contributions to certain employer-sponsored retirement plans, up to annual inflation-adjusted limits. For 2026, eligible individuals can contribute an additional $8,000 above the $24,500 regular 401(k), 403(b) or 457(b) plan limit, for a total of $32,500.

Under SECURE 2.0, beginning in 2025, participants age 60 to 63 can make up to $11,250 in catch-up contributions to these plans, bringing the maximum to $35,750 for 2026.

Before 2026, employees could make catch-up contributions pretax to traditional plans or, if their employer offered the option, after-tax to Roth plans. Pretax contributions reduce taxable income for the year contributed, but distributions are generally taxable. Roth contributions don’t reduce current-year taxable income, but distributions are generally tax-free.

Mandatory Roth Treatment for High Earners
SECURE 2.0 requires that, beginning in 2026, any catch-up contributions made by higher-income participants to 401(k), 403(b) or 457(b) plans be designated as Roth contributions.

The Roth requirement was originally scheduled to take effect for 2024. In 2023, the IRS extended the effective date to January 1, 2026.

For 2026, the Roth requirement applies to participants whose 2025 Social Security wages from the employer exceeded $150,000 as reflected in Box 3 of Form W-2, “Wage and Tax Statement.” The $150,000 threshold will be adjusted annually for inflation.

Are You Affected?
Plans that didn’t offer a Roth option in 2025 had to either add one for 2026 or eliminate higher-income participants’ ability to make catch-up contributions. So if the Roth requirement applies to you and your retirement plan doesn’t offer a Roth option, you won’t be able to make catch-up contributions in 2026.

Check with your employer about your options. It may have implemented a “deemed election” approach for employees subject to the new rules. This automatically treats catch-up contributions as Roth unless the employee opts out of catch-up contributions.

Also, keep in mind that making Roth catch-up contributions instead of traditional ones (or not making catch-up contributions) will increase your taxable income for 2026. This may reduce or eliminate the tax benefits of breaks that are subject to phaseouts, floors or other income-based limits and even push you into a higher tax bracket.

Professional Guidance Can Help
If you’re affected, you should review your retirement and tax strategies in light of the changes. Contact the office with any questions.

04/08/2026

What to Know If You Receive an IRS Notice
Notices from the IRS are more common than you may realize. Each year, the IRS mails millions of letters to clarify information, confirm changes or request additional documentation. Receiving a notice may seem intimidating, but most notices can be addressed quickly with the right information and guidance.

5 Common IRS Notices Explained
Each IRS notice includes a reference number, such as CP49 or CP14. It identifies the issue and helps determine the appropriate response. Below is an overview of the most common types of notices and what to do if one arrives in your mailbox:

1. CP12 (including CP12, CP12E, CP12F, CP12G, CP12N and CP12U), refund adjustment. A CP12 is sent when the IRS corrects a math error or similar issue on your tax return. The correction may increase or decrease your expected refund. If you agree with the change, no response is required. If you disagree, call the IRS at the toll-free number shown on the notice by the date indicated.

2. CP14, balance due. This notice informs you that you owe taxes. Address the notice promptly. You can pay in full, explore installment options or seek assistance if you believe the notice is incorrect. Ignoring it can result in interest charges, penalties and collection actions.

3. CP49, refund applied to a debt. This notice explains that your refund was used to pay all or part of an outstanding tax liability. Review how the refund was applied. Disputes are generally handled with the agency that received the funds, not the IRS. On a joint return, a spouse who’s not responsible for the debt may be able to recover his or her share of the refund by filing Form 8379, “Injured Spouse Allocation.”

4. CP2000 series, proposed changes to your return. This notice is issued when the IRS compares your tax return to information reported by third parties, such as employers or financial institutions, and finds a mismatch. It isn’t a bill; it’s a proposal to adjust your return. Read the notice carefully and respond by the deadline listed. Follow the instructions, include any required documentation and note whether you agree or disagree. If no response is received, additional notices or a bill may follow.

5. Letter 4883C, identity verification. When the IRS suspects possible identity theft, it may pause processing your return until your identity is confirmed. Call the Taxpayer Protection Program hotline as directed in the letter. Have the tax return referenced in the letter, a prior-year return (if available), and supporting documents, such as Form W-2, Form 1099 and Schedule C, ready. If you didn’t file the return listed in the notice, contact the IRS immediately, because this may indicate identity theft.

Speaking of fraud, remember that the IRS will never email, text or call demanding payment. Legitimate notices always come by mail.

Understanding Your Options
IRS notices can be confusing, especially when calculations or supporting documents are involved. If you receive a notice, contact the office for help confirming whether it’s accurate, understanding your options and communicating with the IRS.

03/26/2026

Okay Friends you are officially on notice.
You have 20 days to file your taxes. If you need help get it all emailed over to me as soon as possible so I can get you done.

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610 Colfax Drive
Daytona Beach, FL
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