On-demand accounting platform Taxfyle on Monday introduced TXF Intelligence, a generative artificial intelligence tool built to automate and streamline tax return preparation for small tax and accounting firms in the U.S.
TXF Intelligence was designed with the small tax preparer in mind, Taxfyle said. It automates the process from data collection to tax return preparation, all within firms’ existing tax software. Small preparers, usually sole proprietors or two-person firms, lack access to bigger firms’ software tools due to cost and operational maintenance overhead. In 2024, the average technology budget at large firms was $312,191, compared to $10,459 for small firms, according to Thomson Reuters.
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“TXF Intelligence embodies our mission to level the playing field for small tax firms,” Richard Laviña, CEO of Taxfyle, said in a statement. “For too long, small tax and accounting practices have been forced to choose between affordability and efficiency. With TXF, we designed a robust AI tool specifically for their needs.”
In 2025, AI usage within accounting firms nearly tripled. According to research by Thomson Reuters, 71% of tax and accounting professionals believe AI should be used daily, and 77% of tax clients want their firms to use AI.
TXF Intelligence enhances efficiency by automating data entry and document processing while integrating seamlessly with popular tax software like Intuit ProConnect and Drake Tax. It works alongside existing systems, allowing firms to maintain their current workflows for compliance and e-filing while streamlining preparation with AI-driven automation.
“We built TXF Intelligence to work with, not against, existing tax software,” said Phillip Ingelmo, chief technology officer of Taxfyle. “We’re removing the most time-consuming bottlenecks tax professionals face. TXF ensures that small firms can benefit from cutting-edge technology without disrupting the systems they rely on.”
Furthermore, as an additional feature, TXF can be combined with Taxfyle’s network of 7,000 licensed CPAs and IRS enrolled agents for firms looking to grow their practice and needing to offload their entire preparation process.
More information about TXF Intelligence can be found here.
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