TaxGPT Debuts Autonomous Tax Prep Agent to Slash Return Processing Time for Firms

New updates have been reported about TaxGPT.

TaxGPT has launched its Tax Prep Agent, an autonomous AI system that prepares tax returns end-to-end inside firms’ existing tax software, positioning the company at the center of efforts to automate high-volume tax workflows. Powered by browser automation and trained on real firm processes, the agent ingests workpapers such as W-2s, 1099s, K-1s, and Excel trial balances, then logs into web-based tax platforms, inputs data, runs diagnostics, and escalates only items that require professional judgment.

Once the initial preparation is complete, the Tax Prep Agent hands off to Agent Andrew, TaxGPT’s dedicated review agent, which reconciles source documents with the drafted return and flags audit-sensitive issues for CPA sign-off, effectively creating a two-agent workflow that mirrors human preparer–reviewer teams. For a typical 20-person firm handling around 2,000 individual returns per season, TaxGPT estimates savings of about 45 minutes per Form 1040 and a fivefold increase in review capacity, contributing to an approximate 90% reduction in first-pass preparation time.

Leadership emphasizes that this architecture was built AI-native rather than retrofitted onto legacy code, allowing deeper workflow integration and faster deployment across web-based intake, onboarding, preparation, and delivery tools already used by firms. The company frames the launch against a structural capacity crunch in the U.S. accounting sector, where graduate enrollment in accounting has declined and AICPA data show nearly three-quarters of CPAs nearing retirement age, even as the complexity of the U.S. tax code imposes hundreds of billions of dollars in compliance costs annually.

Currently optimized for 1040 returns, TaxGPT plans to extend the Tax Prep Agent to 1065 and 1120 filings, and expects its agents to operate desktop applications in the coming weeks, broadening the addressable market across firm sizes and technology stacks. From a risk and compliance standpoint, TaxGPT highlights SOC 2 Type 2 certification, encryption of data at rest and in transit, onshore hosting, and firm-level access controls, all critical for enterprise adoption by regulated professional services firms.

Founded in 2023 by CEO Kashif Ali and CTO Isabella Maceda-Ali and headquartered in San Francisco, TaxGPT reports serving more than 70,000 users across the accounting profession as of March 2026, providing a sizable installed base for cross-selling the new autonomous workflow capabilities. The company is currently running demonstrations of the Tax Prep Agent for CPAs, positioning this release as a key step in scaling firms’ production capacity without proportional headcount growth, while freeing human professionals to focus on higher-value advisory and judgment-intensive work.