Deduction, a new AI-native tax platform, has unveiled Taylor, CPAI—an autonomous AI tax accountant designed specifically for everyday U.S. taxpayers.
The company emerges from stealth with $2.8 million in pre-seed funding led by One Way Ventures and Creator Ventures, with additional backing from Alpine VC, Intuition, Charley Moore (founder of Rocket Lawyer), and angels from OpenAI and Robinhood.
AI Tax Help Built for Consumers, Not Professionals
While most AI tax products focus on accountants or enterprise workflows, Deduction’s offering is built for individuals. Taylor, CPAI communicates with users the same way a human accountant would — via text, call, chat, or email — without the need to download an app, complete questionnaires, or navigate portals.
The system handles year-round tax planning, finds deductions and credits, prepares compliant federal and state filings, and answers financial questions instantly. Every return and major decision is reviewed by a licensed CPA, combining AI speed with human oversight.
“We built Deduction to transform the customer experience, not to squeeze margins for accountants,” said Sai Dhanak, co-founder and CEO.
“With Taylor, CPAI, anyone can have a personal accountant—without the wait times, paperwork, or massive bills.”
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EAddressing the Growing Shortage of CPAs
The U.S. accounting industry is facing a structural crisis: most CPAs are nearing retirement age, fewer students are entering the field, and consumers are stuck waiting weeks for help while paying rapidly rising fees.
Deduction aims to fill this gap by automating the most time-intensive parts of tax prep—data entry, document collection, communication, deduction discovery, and return assembly—while keeping human experts involved for accuracy and compliance guarantees.
“Demand for high-touch tax prep far exceeds supply,” said Semyon Dukach, founding partner at One Way Ventures.
“Deduction is building the tax firm of the future—AI first, but with real professionals ensuring quality.”
A New Class of Tax Filer
Tax preparation for complex filings often runs between $1,000 and $10,000, with slow turnaround times becoming the norm. Deduction offers a streamlined alternative: rapid filings, always-on tax guidance, and planning support throughout the year.
Early adopters—including tech workers, creators, and freelancers—have already used Taylor, CPAI to complete returns ahead of the 2026 tax season.
“Millennials and Gen Z expect AI to handle life admin,” Dhanak said.
“We built Taylor with the audits, guardrails, and guarantees needed to make that expectation real.”
The Team Behind the Technology
Deduction was founded by Sai Dhanak and Jonathan Kieliszak. Dhanak grew up in the U.K., where payroll and tax systems are largely automated, while Kieliszak comes from a family of accountants and saw firsthand how overwork and outdated tools undermine the profession.
“A great accountant is deeply specialized,” said Kieliszak, CTO.
“So Taylor was trained alongside our CPA team, with strict controls and curated data sources to ensure trustworthy outputs.”
Deduction’s CPA group, led by Senior Tax Advisor Casey Epton, reviews every return before it’s filed. The broader team includes veterans from Square, Robinhood, Strike, Gusto, and several major fintech companies.
Key Features of Deduction
- Complete, compliant federal and state tax filings
- 24/7 answers to tax and financial questions
- Proactive deduction and credit discovery
- Automatic retrieval of W-2s, 1099s, and other documents
- Reading and interpreting receipts, PDFs, spreadsheets, and uncommon forms
- Tracking of taxable events (option exercises, RMDs, business transactions, etc.)
- Dollar-accurate tax calculations
- CPA review of all high-impact decisions
- 100% guarantee against interest and penalties
- The Vault: secure encrypted document storage
- Transparent, accessible pricing
About Deduction
Deduction is an AI-native tax service built to give consumers a modern, seamless alternative to traditional accounting. Its AI accountant, Taylor, CPAI, offers year-round planning, fast tax advice, and fully compliant IRS-ready filings — all backed by licensed tax professionals.
