Magnetic (magnetictax.com) is an AI-powered tax preparer platform that automates key aspects of tax practice by scanning client documents, extracting data, and entering it directly into existing tax software systems, much like a human preparer would. Designed to streamline and modernize tax workflows, Magnetic handles repetitive manual tasks — from document organization to form entry — using advanced OCR and AI recognition to process over 94 types of documents with an accuracy rate of 99.8%.
The platform integrates seamlessly with leading tax software providers, including Thompson Reuters, Intuit, Wolters Kluwer, and Drake. Magnetic also organizes workpapers into a single, bookmarked PDF, helping tax professionals consolidate and access supporting documentation more efficiently. By automating time-consuming data entry and document processing, Magnetic enables tax professionals to dedicate more time to strategic advisory and client relationships.
How was Magnetic started?
Magnetic was founded in 2024 by Thomas Shelley (Founder & CEO) and Patrick Fay (Founder & CTO). Thomas Shelley previously served as Head of Product at Keeper (YC W19), where he developed tax engine automation systems and OCR form scanning tools. Patrick Fay was the first engineer at FunCraft and led engineering teams at Zynga. The team brings deep expertise in AI, OCR, and tax technology, having built products used by millions and processed thousands of tax returns. Additional key team members include Charisse Yeh (Lead Designer), Spencer Whitman (AI Advisor), David Kang (Tax Advisor), and Nathan Hefner (Technology Advisor).
Who uses Magnetic?
Magnetic primarily serves tax professionals and accounting firms seeking to automate manual data entry and document management in their tax workflow. Early customers include organizations like Rivet Advisors and P&T Tax Services. The solution is particularly valuable for practices aiming to reduce repetitive work, minimize errors, and focus on higher-value client service.
What makes Magnetic unique?
Magnetic stands out for its proprietary vision model, which outperforms incumbent scanning technology with nearly double the accuracy. Launched in the midst of the 2024 tax season, Magnetic has already processed hundreds of returns and achieved thousands in annual recurring revenue (ARR), with customer growth exceeding 30% month-over-month. The platform has automated over 25% of the typical return process and is recognized for its ability to handle a wide range of document types with high precision.
Who are Magnetic's competitors?
Magnetic competes with other tax automation and document scanning solutions that integrate with professional tax software. Its key differentiator is the combination of advanced OCR/AI capabilities, integration breadth, and workflow automation designed specifically for tax professionals.
For more about their story and team, visit Magnetic's About page.
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