Highlights:

• Finish your part for tax season in only 10 minutes
• Users snap pics of tax documents, TaxDrop’s CPAs prepare tax return
• Almost $10B market, with >137M tax returns filed annually
• Selected by TechCrunch Disrupt NYC 2017
• Founders with Financial Service experience from Deloitte, Moody’s, and CPA firm tax/accounting experience

Say bye to tax season in minutes.

TaxDrop is a mobile app that connects you with a licensed CPA who prepares your tax return. Snap, upload, done.

But even better: connect your bank account to have all possible deductions scanned and identified. Hands-free!

Every year, 137 million people struggle to sort out documents needed for their tax returns. The tax code is complicated, convoluted, and confusing – that’s why an estimated 59.2% of Americans chose to enroll the help of a tax professional.

Self-prepared returns’ error rate is as high as 37%.

IRS Return Preparer Industry Analysis

Self-filing software feels like self-diagnosing yourself via webMD instead of seeing a real doctor. The error rate for self-prepared returns is up to 28x greater than for paid-prepared returns. 

Consumers face two major hurdles when utilizing tax help: CPA and legal services’ web portals are tedious, and many tax preparers are unlicensed and unqualified to do their jobs.

Welcome to efficiency. The first to seek true automation when filing taxes, TaxDrop doesn’t just make it easier to self-file or only more efficient for the preparer. It’s a step towards the real solution.

Leave the taxes to the pros.

How it works

1. Snap photos of your tax docs. You have a W-2 form? Take a picture of that. Loan documents? That too. You can snap a pic of anything, no matter if it’s a form received in the mail or online (screenshots are okay!). 

2. Fill out your profile (once). This is basic information that you already have on hand: current address, marital status, dependents, etc.

3. Send to TaxDrop. You’re done! One of TaxDrop’s CPAs will reach out if they need more info – virtually through a secured portal – all for your peace of mind.

“Why should TaxDrop prepare my taxes”?

• TaxDrop speaks your language! We put tax language into plain English for you. We are just a text message away, no in-office appointment necessary.
• TaxDrop only uses CPAs. CPAs have standards to maintain, established at the state level, requiring hours of education and experience like doctors. They have the necessary education and understand the nuances of taxes in the U.S.
• TaxDrop CPAs are experienced. TaxDrop works on tax returns for many clients, some who have more complicated forms than you do. You can be confident that they know their way around the tax code.
• Yay no pants! Kick back in your PJs at home. Snap TaxDrop pics casually during a commercial break on your couch. Treat yourself to that beer. Cheers.

Why Invest?

1. Tax preparation market emerged as its own industry

The industry grew over 2% between 2010 and 2015; faster growth is expected.

2. Digital tax preparation is growing fast

• The Future’s Priority: The Digitalization of the Tax Industry
• Forbes: Sales are adding up for Accountants and Tax Preparers
• CPA firms are on renovation fast-track to cope with the new demands of the digital age.
• More than +1 million users are using tax prep mobile applications.
• The market is truly in need of cheaper and faster tax solutions, but no clear winner has emerged.

3. Competitive advantage

TaxDrop is well positioned to capture substantial market share and grow fast. Our focus is on making the client’s tax experience as comfortable and seamless as possible, which all consumers are rooting for.

4. Because you want to see tax season become irrelevant

Investing in TaxDrop moves consumer experience with taxes towards automation and artificial intelligence. 

Our short-term vision is to make TaxDrop intelligent enough to scan your bank accounts, receipts, and tax documents to pull income and deductions real-time with CPA supervision, so you’ll know your refund before tax returns are due and withhold tax more precisely during the year. 

You won’t even know your tax returns are being prepared, because what is tax season?

Business Model

We offer our service on a pay-per-use basis, with three pricing models to better serve the market segments.

Launched at TechCrunch Disrupt 2017 and well received by first customers

Moving Forward

In this early phase, TaxDrop aims to reach 3000 clients by 2018, at an average estimated fee of $200 per client. To push market adoption, we are going to follow two tracks:

• Partnerships with companies who will provide employee perks (e.g. covered tax prep)
• Other partnerships
  • with applications that add to the accounting and financial services assembly line (e.g. Painless1099).
  • with companies who support women entrepreneurs

Your Funding will be used towards

• Android development
• Expense upload feature (see image below)
• Expanding the TaxDrop team
• Making tax season irrelevant

Suddenly, all expenses that users forgot they incurred throughout the year are being utilized to cut down tax liability, and they wouldn’t even need to lift a finger.

Drop throughout the year

Easy button to send off the little things that add up

• Stop hoarding receipts at home
• More deductions
• We will categorize and organize for you

We are always looking for ways to cut down total time spent on the consumer side.

TaxDrop plans to use OCR technology and AI to identify and automatically populate the tax return, leaving the human talent for the review process. As TaxDrop connects to bank accounts and scans tax documents received, key numbers and information will be extracted, reorganized and populated into the tax software.

It is no doubt that repetitive processes in any market or industry are being overtaken by automation and machine intelligence. TaxDrop encourages this efficiency and strives to be at the forefront of that innovation. A hybrid between self-filing and a CPA manually completing returns, in ten years’ time, we could even be working directly with the federal government to get your tax returns and refunds processed faster and more efficiently.

About the Founder

Alice Cheng – Certified Public Accountant

“I graduated from Rutgers University in 2015 and passed all CPA exams within 3 months after graduation, becoming a licensed CPA in NY State.

Right before that, I got invaluable experience at Deloitte, initially in enterprise services in 2013 and later moving to the famed tax department, and then quickly growing to become a Deloitte international tax consultant.

That’s when I got the idea to solve the issue of filing taxes for busy people who don’t have the time or patience to deal with tax returns (as I found out, the majority of people).

My friends who were in medical school or even finance professionals all felt lost when it came to taxes. During my days at Deloitte and my accounting practice back in college, I saw firsthand how inefficient the current process of using a paid-preparer is: clients would call to see when the next available appointment could be that also matched their schedules, they’d show up with a bag of receipts and papers only to be sent home when told the firm didn’t offer receipt organization services.

Most tax prep staff sat at a computer entering numbers in the tax software and constantly checking to see if it was entered right. All these inefficiencies could have easily been helped by everything TaxDrop offers today.”

Get on the TaxDrop train!

We know the current taxprep system needs a lot of work and we know how to fix it. Help us accomplish our mission to connect taxpayers to the taxpros in the most efficient way.