Back to all companies
Sign in
Back to all companies
Magnetic logo

Magnetic

Summer 2025Active

AI Tax Preparer for CPA firms

Save
Magnetic logo

Magnetic

Summer 2025Active

AI Tax Preparer for CPA firms

Save
Company details

Magnetic scans client documents - from handwritten charity notes to excel spreadsheet Schedule Cs to multi-state K-1s - and enters them into tax software automatically, saving hours of tedious data entry.

The accounting profession is facing a massive talent shortage, as graduates choose different professions and the old guard begins to retire. As a result, CPA and tax preparation firms are awash in clientele, but unable to keep up. At many firms, phones go unanswered, clients are "fired", and websites are taken down, as the existing workforce tries to handle the grueling 80 hour+ weeks necessary to push through tax season to the April 15th deadline.

We built this because a former colleague who owns her own tax firm asked us to automate her workload, and we quickly realized the massive opportunity. Thomas brings deep domain expertise as the former Head of Product at Keeper (YC W19), where he built tax engine automation systems and an OCR form scanning system that outperformed everything else on the market. At Keeper, he leveraged early access to OpenAI's LLMs (well before ChatGPT) to build systems that automated the entire tax filing process, allowing a tiny team of CPAs to process thousands of returns with near zero busy work. Patrick was the first engineer at FunCraft, shipping multiple mobile games with 1M+ downloads and building scalable shared codebases. We've worked together since 2017, including co-leading multiple teams at Zynga as PM & Tech Lead respectively.

The opportunity is massive - there are 80M US personal tax returns filed via professionals annually, in a $2B outsourcing market where individual CPA firms currently pay $100k-$1M per year for inferior services. We're positioned to capture significant market share by offering better accuracy & document coverage, instant processing, and superior user experience.

We've built this kind of software before, we've worked together for years (and even lived together), we've built products to $10M ARR before, and we have the grit to outwork anyone in this space.

Location
San Francisco, CA, USA
Founded
Unknown
YC Directory Pagewww.magnetictax.com
Founders
  • TS
    Thomas Shelley
    Founder
    X / TwitterLinkedIn
  • PF
    Patrick Fay
    Founder
    LinkedIn

Magnetic scans client documents - from handwritten charity notes to excel spreadsheet Schedule Cs to multi-state K-1s - and enters them into tax software automatically, saving hours of tedious data entry.

The accounting profession is facing a massive talent shortage, as graduates choose different professions and the old guard begins to retire. As a result, CPA and tax preparation firms are awash in clientele, but unable to keep up. At many firms, phones go unanswered, clients are "fired", and websites are taken down, as the existing workforce tries to handle the grueling 80 hour+ weeks necessary to push through tax season to the April 15th deadline.

We built this because a former colleague who owns her own tax firm asked us to automate her workload, and we quickly realized the massive opportunity. Thomas brings deep domain expertise as the former Head of Product at Keeper (YC W19), where he built tax engine automation systems and an OCR form scanning system that outperformed everything else on the market. At Keeper, he leveraged early access to OpenAI's LLMs (well before ChatGPT) to build systems that automated the entire tax filing process, allowing a tiny team of CPAs to process thousands of returns with near zero busy work. Patrick was the first engineer at FunCraft, shipping multiple mobile games with 1M+ downloads and building scalable shared codebases. We've worked together since 2017, including co-leading multiple teams at Zynga as PM & Tech Lead respectively.

The opportunity is massive - there are 80M US personal tax returns filed via professionals annually, in a $2B outsourcing market where individual CPA firms currently pay $100k-$1M per year for inferior services. We're positioned to capture significant market share by offering better accuracy & document coverage, instant processing, and superior user experience.

We've built this kind of software before, we've worked together for years (and even lived together), we've built products to $10M ARR before, and we have the grit to outwork anyone in this space.

Location
San Francisco, CA, USA
Founded
Unknown
YC Directory Pagewww.magnetictax.com
Founders
  • TS
    Thomas Shelley
    Founder
    X / TwitterLinkedIn
  • PF
    Patrick Fay
    Founder
    LinkedIn
Pro

Upgrade to Pro, then request the Magnetic teardown.

This company does not have a completed analysis yet. Choose a Pro plan first, then use one of your 5 monthly research requests to have our agent investigate Magnetic. The full teardown, rebuild plan, and technical specs unlock when it lands.

  • Use Pro to request the first Magnetic teardown and keep the finished report in your account.
  • Read every completed teardown and rebuild plan already in the database.
  • Unlock implementation-ready technical specs and 5 fresh research requests each month.

Choose your Pro plan

$20/ month

Find one worth rebuilding, get the teardown, open the implementation-ready specs, and use fresh report requests when you want deeper research.

See Pro plans
Full teardown library
Specs for every company
5 fresh requests / month
CLI for agent imports
Startups.RIP — Dead startups, alive ideas
PricingContactPrivacyGot feedback? DM @oscrhong