Magnetic
AI tax preparation agent that reads mixed client documents and enters the data into a firm's existing tax software.
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About Magnetic
Magnetic is an AI tax preparation platform for CPA firms. It scans a client's source documents, works through inconsistent or incomplete inputs, and enters the resulting data into the tax software the firm already runs, including UltraTax, Drake and Intuit ProConnect, rather than asking the firm to move to a new system.
The company is based in San Francisco, was founded in 2024 and went through Y Combinator's Summer 2025 batch. It raised a 5.2 million US dollar seed round backed by Grishin Robotics, and in 2026 announced a tax agent covering nearly all of the 1040 preparation workflow, including judgement-heavy areas such as the home office deduction, paired with an accuracy guarantee on all returns. Technically it runs an orchestrator agent that delegates to smaller specialist sub-agents, roughly one per schedule, each with a narrow context window.
It is positioned at tax and accounting firms that want to cut data entry and review time on 1040 work without rebuilding their existing software stack. Magnetic states that customers have cut time spent on returns by 77% and that extraction accuracy runs at 99.8%, both of which are the company's own figures.
Key Features
- Scans and reasons over messy, mixed client source documents
- Enters data directly into existing tax software rather than replacing it
- Orchestrator agent delegating to specialist sub-agents, roughly one per schedule
- Accuracy guarantee offered across all returns
Our in-depth review
Magnetic is one of a growing group of vendors betting that the winning move in tax automation is not replacing the tax software a firm already uses, but driving it.
What it does well. The integration model is the strongest part of the pitch. By having its agent interact with UltraTax, Drake or ProConnect the way a preparer would, Magnetic sidesteps the biggest reason firms abandon tax technology, which is being asked to migrate mid-season. The sub-agent architecture, with one focused agent per schedule reporting to an orchestrator, is a sensible response to the context limits that trip up single-model approaches on long, messy return packages. The accuracy guarantee across all returns is unusual in this category and shifts at least some risk back onto the vendor, which matters when the alternative is a preparer signing off on numbers they did not key.
Where it falls short. The headline numbers, 99.8% extraction accuracy and a 77% reduction in time spent per return, are Magnetic's own and have no published independent verification. The company is young, founded in 2024, with a 5.2 million US dollar seed round behind it, so buyers should expect a small support team and an evolving product. Coverage is centred on 1040 work, so firms with heavy business return volume will find gaps. Pricing is not published, which makes comparison shopping harder than it should be, and the terms of the accuracy guarantee are worth reading closely before relying on them.
Best for. Tax firms with meaningful 1040 volume that are committed to their current tax software and want to remove data entry rather than re-platform.
Verdict. A credible, well-designed answer to tax data entry, but one that still asks buyers to take its accuracy claims largely on trust.
At a glance
- Category
- Tax prep
- Best for
- All sizes practice
- Editor's score
- 4.2 / 5
- Last verified
- 2026-09-10
Strong fit for firms that want AI to feed their existing tax software rather than replace it.
Integrations
- UltraTax
- Drake Tax
- Intuit ProConnect
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