Magnetic

AI Tax Preparer for CPA firms

2.6Score#454 of 999 agents#5 of 7 in Tax preparer

Why it ranks #454

Magnetic, an AI tax preparer from YC S25, ranks #454 of 999 AI agents and #5 of 7 in Tax preparer, with a score of 2.6 of 10. Data as of 3 Oct 2026.

The score adds four parts, each 0 to 10, by weight. Every point comes from public evidence. How scoring works ·

Proof 0 × 30% 0.0
Scale 4 × 30% 1.2
Momentum 2 × 25% 0.5
Autonomy 6 × 15% 0.9
= 2.6

Proof
Do customers use it? 30% of the score
0
No public claims of customers or revenue yet.
Not found: revenue or growth (+4), named customers (+3), a customer result (+2), a customer count (+2), work done at scale (+2)
Scale
Is there a real company behind it? 30% of the score
4
10 people.
- +4
  10 people on its YC page10 to 19 people
Not found: funding round in its news (+3)
Momentum
Is it shipping and growing now? 25% of the score
2
Shows hiring.
- +2
  Hiring: 3 open rolesSenior Fullstack Software Engineer, Head of Operations, Founding Account ExecutiveYC page
Not found: launch YC post in the last 6 months (+3), new traction claim in the last 6 months (+2), funding news in the last year (+2), a batch in the last year (it is YC Summer 2025) (+1)
Autonomy
How much of the job does it do on its own? 15% of the score
6
Supervised agent: takes actions in other systems; a person approves key steps.
- +6
  Level 2 of 4: Supervised agentTakes actions in other systems; a person approves key steps.
What the model read
- Acts in other systems: 87% likely
- Finishes whole tasks: 16% likely
- Calls itself an agent: 4% likely
Level 2: Takes actions in other systems; a person approves key steps.

About Magnetic

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.