Magnetic
Magnetic is an AI tax preparation platform that automates 1040 return preparation for US tax and accounting firms using Vision-Language Models, an agentic reasoning engine, and a human-in-the-loop EA/CPA review layer.
- Company typePrivate
- Founded2025
- HeadquartersSan Francisco, United States
- Headcount1–10
- GTM typeB2B
- OfferingSoftware
What Magnetic does
Magnetic (legally i plus one, INC., DBA Magnetic) is an AI-native tax preparation platform that automates 1040 return preparation for US tax and accounting firms. The product combines Vision-Language Models with OCR, an agentic reasoning engine that operates across multiple documents simultaneously, and a computer-use protocol that enters data directly into five leading tax software engines. Every return is reviewed by US-based licensed Enrolled Agents or CPAs before delivery, positioning Magnetic as a human-plus-AI system designed to produce returns worthy of a 20-30 minute partner-level review rather than detailed re-work. The company claims 99.9% field-level scan accuracy, 77% time savings per return, and 60+ firms onboarded.
The company was founded by Thomas Shelley, previously Head of Product at Keeper (an AI-powered tax prep company), and Patrick Fay serves as CTO. Magnetic targets tax and accounting firms through a demo-driven B2B enterprise sales motion with quote-based subscription or per-return pricing that is not publicly disclosed. The company is backed by Y Combinator (which led a $500K round on 2025-07-04), Orange Collective, Formus Capital, Seguin Ventures, Amino Capital, and Singularity Capital, and operates as a venture-backed private company with 1-10 employees based in San Francisco. Distribution is direct via a web-based portal requiring no installation, with cloud and security infrastructure on Microsoft Azure and compliance with GLBA and IRS security rules.
Magnetic firmographics
Firmographics- Name
- Magnetic
- Legal name
- i plus one, INC.
- Website
- https://magnetictax.com
- Company type
- Private
- Founded year
- 2025
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Magnetic is an AI tax preparation platform that automates 1040 return preparation for US tax and accounting firms using Vision-Language Models, an agentic reasoning engine, and a human-in-the-loop EA/CPA review layer.
- Ownership category
- akta.pro rank
Magnetic industry classification
Industry- Product category
- AI Tax Preparation Software
- NAICS
- Accounting, Tax Preparation, Bookkeeping, and Payroll Services (5412)
- SIC
- Services-Computer Programming, Data Processing, Etc. (7370), Services-Computer Processing & Data Preparation (7374)
- akta.pro primary industry
- Tax Planning & Personal Tax Optimization Tools (FSAGADAJ)
- akta.pro secondary industry
- Document Capture, Scanning, OCR/ICR & Intelligent Document Processing (IDP) (HDAEAGAD)
Keywords
Where Magnetic is headquartered
LocationHeadquarters
- HQ city
- San Francisco
- HQ country
- United States
- HQ region
- North America
Markets served
Magnetic business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Infrastructure, Operations, Marketing or Sales
Revenue model
- Tax Prep Automation SaaS: Magnetic provides an agentic AI tax preparation platform that automates the hardest returns for tax firms. The company appears to operate on a SaaS/subscription model where firms pay for access to the platform and automated prep services, with pricing likely per-return or subscription-based given the B2B enterprise nature.
Go-to-market motion1 record
Distribution channels1 record
Marketing channels2 records
Magnetic product offering
Product offeringCore offering
Magnetic provides an agentic AI tax preparation platform that automates the full 1040 return for tax and accounting firms. The platform uses Vision Language Models and OCR to scan client documents (PDFs, Excel, TIFFs, handwritten notes, phone photos), an AI reasoning agent to reconcile data across sources, a computer-use protocol to enter results directly into the firm's tax software, and a final review by US-based licensed EAs and CPAs before delivery with a 99.9% accuracy guarantee.
Product overview
Magnetic is a single, unified agentic tax prep platform designed for tax and accounting firms. The core product combines AI-powered document scanning (using Vision Language Models and OCR), an autonomous reasoning agent that processes and reconciles multiple document types, direct entry into tax software via computer-use protocol, and human review by licensed US-based EAs and CPAs. The platform handles the full 1040 return including multi-state K-1s, complex P&L spreadsheets, tax organizers, and receipt data.
Differentiator
Problem solved
Functional benefit
Products and services
- Magnetic Agentic AI Tax Prep Platform End-to-end agentic AI tax preparation platform for US tax and accounting firms that automates full 1040 returns including multi-state K-1s, P&L spreadsheets, organizer data, and receipt shoeboxes, delivering completed returns reviewed by licensed EAs and CPAs with a 99.9% field-level scan accuracy guarantee.
Quantifiable outcome
- 77% time saved on per return preparation
- +3 more outcomes
Companies that use Magnetic
Customer profileNamed customers5 records
Segments1 record
Ideal customer profiles1 record
Magnetic technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
AI capability6 records
Feature6 records
Magnetic partnerships and signals
Strategic signalScale indicators3 records
Recent moves6 records
Expansion highlights5 records
Magnetic competitors and assessment
Company assessmentDirect peers
- Keeper: AI-powered tax preparation company where Magnetic's founder Thomas Shelley previously led product. Keeper filed tens of thousands of returns using a similar human-plus-AI model and is the most direct conceptual competitor, having proven the model at consumer scale that Magnetic is now adapting for direct firm deployment.
- Botkeeper: Automated bookkeeping platform that combines AI with human accountants to serve accounting firms and SMBs. Overlaps with Magnetic in human-plus-AI financial workflow automation for professional services firms.
- TaxDome: All-in-one practice management and workflow automation platform for tax and accounting firms. Targets the same buyer (tax firm principals), overlaps in document collection and workflow automation, and competes for the same firm automation budget.
- Bench: AI-assisted bookkeeping service combining software with human bookkeepers for SMBs. Competes in the same AI-plus-human financial workflow category as Magnetic, though more focused on ongoing bookkeeping than seasonal tax prep.
- Canopy: Practice management and document workflow platform built specifically for tax and accounting firms. Overlaps with Magnetic in document intake, workflow automation, and serving the same tax-firm buyer.
Emerging players
- Andre (a Persona company): AI bookkeeping and accounting automation platform serving accounting firms, overlapping with Magnetic in the AI-for-accounting-firms category and competing for similar firm-level automation budgets.
- Blue J Tax: AI-powered tax research and scenario analysis tool for tax professionals. Competes for AI-driven productivity gains within tax firms, though focused on research/analysis rather than return preparation.
Broad incumbents
- Intuit ProConnect Tax Online: Intuit's professional tax preparation platform for accountants, serving as both a partner integration target (one of Magnetic's five supported engines) and a broad incumbent with the resources to embed competing AI features.
- Wolters Kluwer CCH Axcess: Enterprise tax compliance platform serving large accounting firms with a comprehensive suite of tools. Represents a major incumbent partner/integration target and a competitive threat given its scale and installed base.
- Thomson Reuters UltraTax: Established professional tax preparation software used by mid-market and large accounting firms. Like the other incumbents, it is both a potential integration partner and a long-term competitive risk as it invests in AI capabilities.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat5 records
Key risks5 records
Key highlights6 records
Customer concentration
Magnetic social profiles
Digital presenceMagnetic compliance and trust
Trust signalCompliance2 records
Magnetic financial estimates
Financial estimateRevenue estimate
Valuation estimate
Magnetic leadership team
Management profileNumber of profiles
Profiles2 records
Magnetic funding detail
Funding detailFunding overview
Funding rounds2 records
Investors6 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Magnetic M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Magnetic
What does Magnetic do?
Magnetic provides an agentic AI tax preparation platform that automates the full 1040 return for tax and accounting firms. The platform uses Vision Language Models and OCR to scan client documents (PDFs, Excel, TIFFs, handwritten notes, phone photos), an AI reasoning agent to reconcile data across sources, a computer-use protocol to enter results directly into the firm's tax software, and a final review by US-based licensed EAs and CPAs before delivery with a 99.9% accuracy guarantee.
Is Magnetic a public or private company?
Magnetic is a private company. It is classified as venture growth investor backed and is currently operating.
When was Magnetic founded?
Magnetic was founded in 2025. It employs 1 to 10 people.
Where is Magnetic based?
Magnetic is headquartered in San Francisco, United States, in the North America region.
How does Magnetic make money?
One revenue line is on record: tax Prep Automation SaaS.
Who are Magnetic's main competitors?
Direct peers on record are Keeper, Botkeeper, TaxDome, Bench and Canopy. Emerging players are Andre (a Persona company) and Blue J Tax. Broad incumbents are Intuit ProConnect Tax Online, Wolters Kluwer CCH Axcess and Thomson Reuters UltraTax.
Does Magnetic have an API?
No public API is recorded for Magnetic.
What industry is Magnetic in?
Magnetic's product category is AI Tax Preparation Software. Its primary akta.pro industry code is FSAGADAJ, Tax Planning & Personal Tax Optimization Tools, with a secondary code of HDAEAGAD, Document Capture, Scanning, OCR/ICR & Intelligent Document Processing (IDP). Its NAICS code is 5412 and its SIC code is 7370.