TaxGPT, a San Francisco-based FinTech company specialising in AI-powered tax solutions, has secured $4.6m in funding to enhance its AI tax co-pilot platform for accounting and tax firms.
The investment round included backing from Rebel Fund, Mangusta Capital, Y Combinator, Launch, iSeed Ventures, Converge Fund, TRAC AI/VC Unicorn Fund, Goodwater Genesis, and CRV Disrupt Fund. Notable investors such as Kulveer Taggar, Jason Calacanis, and the co-founders of Truebill also participated.
Founded in 2023 by husband-and-wife duo Kashif Ali and Isabella Maceda-Ali, TaxGPT was born out of a personal tax-related challenge. While trying to determine their tax filing status shortly after getting married, they struggled to find an answer quickly. This inspired them to build an AI-powered solution that could streamline tax research for individuals. However, as they developed the technology, they realised a greater demand from accounting firms and businesses, leading to a pivot towards professional tax compliance solutions.
The company’s AI-driven co-pilot is designed to boost the productivity of tax professionals by tenfold, delivering instant responses to complex tax queries with human-verified accuracy. The platform can generate tax memos, automate responses to IRS notices, and assist tax professionals in handling client emails efficiently. Currently, over 10,000 CPAs, tax lawyers, and enrolled agents use the service, collectively supporting 250,000 clients.
With this latest funding, TaxGPT plans to accelerate product development, invest in sales and marketing efforts, and expand its engineering team. The goal is to enhance its AI capabilities and expand the platform’s reach to more firms in need of an automated tax research solution.
Mangusta Capital’s Kevin Jiang expressed enthusiasm for the investment, stating, “We’re thrilled to work with Kashif and the team at TaxGPT as they are using AI to solve a very concrete problem in the world of accounting.
“By delivering answers to complex tax questions in seconds and automating responses to clients, TaxGPT is providing measurable time-savings and productivity results for accounting firms. We look forward to working with the company to accelerate product development and help them reach more businesses in need of an AI tax co-pilot.”
TaxGPT’s CEO and co-founder Kashif Ali emphasised the importance of the funding, saying, “We are very excited to work with our investors who are experts in AI and innovation to accelerate product development and make our AI tax co-pilot available to more businesses.
“After facing this issue firsthand, we knew there was a need for a simple way to give accounting firms and business owners quick answers to complex tax questions. With advances in GenAI, we were able to build a platform that can streamline the time-consuming process of research, writing tax memos and responding to client emails and IRS notices.”
TaxGPT enters a growing market at a time when tax complexity costs Americans approximately $260bn annually. The accounting sector is also experiencing a talent shortage, with over 75% of CPAs expected to retire within the next decade, making automation and AI-driven solutions increasingly vital for firms.
Keep up with all the latest FinTech news here
Copyright © 2025 FinTech Global
