Introduction to Tax Practice AI - December 29, 2025¶
HIGHLY CONFIDENTIAL
This document contains proprietary business strategy and cost information.
Attendees: TBD Purpose: Initial presentation of Tax Practice AI system and strategy
Quick Links¶
| Resource | Description |
|---|---|
| Platform Demo | NEW 2.5-minute video walkthrough |
| System Presentation | Visual overview (16 slides) |
| Cost Detail | Full cost analysis |
| AI Delegation Strategy | Model routing rules |
| Process Flows | Workflow states |
Agenda¶
0. Platform Demo (~30 sec)¶
Quick walkthrough of the working prototype:
- Login & authentication
- Dashboard with practice metrics
- Client management (list, detail views)
- Tax year dropdown with dynamic years
- 3-panel analysis workspace
- Document viewer and management
- AI Analysis (clickable insights)
- AI Chat Q&A
Video recorded December 28, 2025 - shows current functionality with seed data.
1. System Overview¶
Reference: Presentation Slide 3
- The Problem: Manual document processing, research, and client follow-up consume preparer time
- Our Solution: AI handles routine work, humans handle judgment calls
- The Value: 50%+ time savings, fewer errors, better client experience
- Target Market: Small to mid-size tax firms (500-5,000 returns/year) using UltraTax CS
2. Process Flow Overview¶
Reference: Presentation Slide 3
Five-step AI-assisted workflow:
- Intake - Client onboarding, ID verification, engagement letters
- Documents - Client uploads, AI classifies & extracts, prior year comparison
- Analysis - AI generates worksheets, preparer Q&A assistant, anomaly detection
- Review - AI quality check, human approval, client review
- E-File - Transmit to IRS, track acceptance, handle rejections
AI involvement concentrated in steps 2-4. Humans make final decisions.
3. V1 Companion (Client Portal)¶
Reference: Presentation Slide 4
Client Experience: - Mobile document upload (snap W-2s from phone) - AI Q&A chat (24/7) - Status dashboard - E-signatures (engagement letters, 8879)
Firm Benefits: - Reduced follow-up (AI asks missing questions) - Complete packages upfront - Secure by default - Better client retention
Integration Points: SurePrep (OCR), UltraTax CS (tax/e-file), SmartVault, Persona, Google Workspace, Stripe
4. Economics & Pricing¶
Reference: Presentation Slides 5-6, 10-11
The Bottom Line: - We charge: $20-30/return (recommend $25 launch price) - Our cost: $0.76/return at scale - Gross margin: 96%
Pricing Tiers:
| Tier | Price | Description |
|---|---|---|
| Standard | $20/return | Haiku extraction + Sonnet analysis |
| Professional | $30/return | Standard + Opus escalation (10%) |
| Expert | $50/return | Opus-primary for all analysis |
5. AI Model Delegation¶
Reference: Presentation Slide 7
Three AI "tiers" like hiring staff:
| Model | Analogy | Cost | Use Cases | % of Work |
|---|---|---|---|---|
| Haiku | Junior Associate | $0.25/M tokens | Document sorting, simple forms, FAQs | 60% |
| Sonnet | Senior Associate | $3.00/M tokens | K-1 analysis, preparer Q&A, comparisons | 35% |
| Opus | Tax Partner | $5.00/M tokens | Complex research, final review, judgment | 5% |
Smart routing: Don't send simple tasks to the "Partner"
6. Cost Optimization Strategies¶
Reference: Presentation Slides 8-10
Batch Processing (50% cheaper): - Queue non-urgent work overnight - Results ready by 8 AM - Use for: document processing, analysis, QA review - Savings: ~$0.10/return
Smart Caching (75% token reduction): - Extract document data once, cache summary - Subsequent queries use cached metadata - Savings: ~$0.11/return
Cost Journey: $0.64 → $0.33 → $0.23 → $0.12/return (81% reduction)
7. Competitive Positioning¶
Reference: Presentation Slide 12
| Solution | Price | What You Get |
|---|---|---|
| SurePrep | $12-100/return | Document scanning, data extraction |
| Tax Practice AI | $20-30/return | Above + AI analysis, Q&A assistant, worksheets |
| UltraTax CS | $7K-25K/year | Tax calculations, e-filing (we integrate with this) |
Positioning options: - Replace SurePrep (save $0-80/return) - Complement SurePrep (add AI value for $20-30)
8. Revenue Projections¶
Reference: Presentation Slide 11
At $25/return with 96% gross margin
| Client Firms | Returns | Revenue | Cost | Profit |
|---|---|---|---|---|
| 1 firm | 1,000 | $25,000 | $3,040 | $21,960 |
| 5 firms | 5,000 | $125,000 | $6,320 | $118,680 |
| 10 firms | 10,000 | $250,000 | $10,420 | $239,580 |
| 25 firms | 25,000 | $625,000 | $22,720 | $602,280 |
| 50 firms | 50,000 | $1,250,000 | $43,220 | $1,206,780 |
Discussion Topics¶
Reference: Presentation Slide 14
Pricing Strategy: - Fixed $25/return for everyone, or tiered by complexity? - Volume discounts at 2,500 / 5,000 / 10,000 returns? - Annual commitment or month-to-month?
Market Strategy: - Position as SurePrep replacement or complement? - Demand for $50/return "Expert" tier? - Charge separately for post-season Q&A support?
Discussion Notes¶
(To be captured during meeting)
Decisions¶
(To be captured during meeting)
Action Items¶
(To be captured during meeting)