Filed, a cutting-edge AI startup, has secured $17.2 million in funding to launch its innovative AI Tax Preparer system, designed to revolutionize the tax industry. With this groundbreaking technology, tax firms can process 3x more returns without adding a single new hire, making it an attractive solution for firms struggling to cope with the talent pipeline crisis.
Breaking the Talent Pipeline Crisis
The tax profession is facing a severe talent pipeline crisis, with 75% of CPAs planning to retire, 17% fewer students enrolling in accounting programs since 2019, and over 90% of tax firms unable to hire the staff they need. This shortage has led to a surge in paperwork, with nearly 40% of tax professionals’ time wasted on routine tasks like data entry, document collection, and progress tracking.
- 75% of CPAs plan to retire, leaving a significant gap in the industry.
- 17% fewer students are enrolling in accounting programs since 2019.
- Over 90% of tax firms are struggling to hire the staff they need.
AI-Powered Solution
Filed’s AI Tax Preparer system is designed to automate the low-value work that consumes nearly half of tax professionals’ time, enabling firms to process 3x more returns without additional headcount. This innovative solution works with onshore teams to focus on higher-value work and offshore teams to standardize the throughput of complex tax returns.
| Key Features | Description |
|---|---|
| Specialized AI | Combines foundation models trained on tax returns with a proprietary tax workflow orchestration layer that operates natively on top of existing software. |
| Customizable Firm Profiles | Mirror existing workflows down to naming conventions, review processes, and client communication preferences for seamless integration. |
| Deterministic Workflows | Rather than purely generative AI, Filed escalates edge cases and ambiguous tax scenarios for human review, ensuring auditability, traceability, and compliance with IRS standards. |
Transforming Tax Firms
Filed’s AI Tax Preparer system has already shown remarkable results, with early adopters slashing review cycles by 30-50%. Customers like JCG Tax, Smith CPA, and KBS Tax have cited a decline in return turnaround from seven days to overnight, as well as increased confidence and accuracy.
“Tax season used to be our bottleneck – Filed eliminated it. Our team is now processing four times the returns with fewer CPAs on staff. What used to be our ceiling is now our starting point – we could handle 1,000 returns effortlessly with our current team. It’s not just automation; it’s multiplication of what each professional can accomplish.” – Braedon Porter, Co-founder of Jalada
Industry Recognition
Filed has received recognition from the industry, being selected for the 2025 AICPA/CPA.com Startup Accelerator. This validation further emphasizes its approach to solving the tax industry’s talent crisis.
Long-Term Vision
Filed’s long-term vision extends beyond return preparation to become the foundational AI infrastructure for the tax industry, transforming end-to-end firm operations, including client collaboration, document management, audit preparation, and more.
The company’s founders, Leroy Kerry and Atul Ramachadran, have built a team of experts from top organizations like VISA, Spotify, Deloitte, and KPMG to deliver the industry’s definitive AI platform. With each return processed, Filed’s predictive capabilities enhance, creating a compounding effect that transforms it from a seasonal tool into a year-round operational infrastructure.
The tax sector has been waiting for its AI moment, and Filed is finally delivering. With its innovative solution, tax firms can handle peak workloads without panic-hiring while continuously improving efficiency. As Jessica Schultz at Northzone said, “Filed is the first platform we’ve seen that delivers immediate ROI without disrupting critical workflows.