DANDA #018 — TaxWise: AI Agents to Unlock Hidden Tax Credits for Small Businesses

Every year, small businesses in America lose out on billions in available tax credits—simply because they can't navigate the maze of eligibility rules, documentation, and changing regulations. The IRS estimates that over $20 billion in credits go unclaimed by SMBs, and for many, this can make or break survival. TaxWise is my answer: an AI agent that unlocks tax credits, automates filings, and saves small businesses real money.

The problem

• There are over 33 million small businesses in the US. Most operate with razor-thin margins, and tax season is a persistent anxiety point.
• Annually, SMBs miss out on approximately $20 billion in tax credits, including R&D, Employee Retention, Work Opportunity, and energy credits.
• Over 60% of SMB owners say they lack the confidence or expertise to claim credits, citing complexity, documentation burdens, and fear of audit.
• The IRS reports that 1 in 5 eligible businesses do not claim credits due to errors or missed opportunities.
• CPA demand outstrips supply; small firms often can't afford ongoing expert help, leading to chronic under-claiming.

The idea: TaxWise

TaxWise is an AI agent that connects to SMB accounting software, payroll systems, and document repositories, then continuously scans for available federal and state tax credits. It auto-identifies eligibility, requests missing documents, generates compliant filing paperwork, and helps the business e-file or coordinate with their accountant. It learns from new regulations, adapts to business changes, and proactively nudges owners before deadlines. The result: maximum credits with minimum hassle, and peace of mind.

Architecture

TaxWise starts by ingesting live business data from accounting, payroll, and document systems. The Memory/Graph layer builds a real-time eligibility map, linking regulatory rules to business facts. The Agent Orchestrator runs specialized agents: one for each major credit, dynamically creating tasks to gather missing info or documents. Before any action (filing, e-sign, CPA alert), the Human Gate requests approval or feedback. The Action Layer automates filings, requests signatures, or pushes data to accountants. Every step is tracked for audit defense and compliance.

Build plan (90 days)

• Wedge: Target 10,000 SaaS-enabled SMBs in tech, retail, and manufacturing — focus on R&D and Employee Retention Credits, the two most undersubscribed and valuable.
• Stack: Integrations with QuickBooks, Xero, Gusto, and Google Drive. Use LLMs for regulation parsing, graph DB for mapping eligibility, and secure e-sign APIs for filings.
• Pricing: $99/mo per business, plus 10% of recovered credits; optional CPA partner tier.

Why now

Small business margins are thinner than ever, with inflation and wage increases squeezing cash flow. The tax credit landscape grows more complex every year, and the CPA shortage is acute. AI can finally bridge the gap — parsing regulation, mapping eligibility, automating paperwork, and giving SMBs the confidence to claim every dollar they deserve. The timing is perfect: massive need, abundant data, and mature agentic automation. TaxWise will unlock billions, boost local economies, and give SMBs a fighting chance.