NEO.TAX EXPOSED
Another pop-up tax firm on the loose – this time, it’s Neo.Tax.
Neo.Tax claims to “save time” with AI-powered R&D tax filings. What they don’t say? That speed comes with serious risk.
Despite warnings from the IRS and veteran tax pros, firms like Neo.Tax are out here posing as experts – pushing “outputs in days” while ignoring what real compliance demands. This isn’t efficient. It’s a shortcut to audits, fraud and legal fallout.
Even Neo.Tax’s cofounder, Firas Abuzaid, admits AI doesn’t fit everywhere. But they’re still forcing it into the high-risk world of R&D tax credits.
Overreliance on AI here isn’t innovative – it’s dangerous.
THROWING THE RED FLAG ON NEO.TAX
NEO.TAX CLAIM
“Neo.Tax’s technology protects taxpayers in the case of an IRS audit.”
REALITY
An AI tool doesn’t show up when the IRS knocks. There is no bot that handles federal scrutiny. Are clients expected to fend for themselves?
NEO.TAX CLAIM
“AI eliminates the need for lengthy interviews.”
REALITY
That’s called skipping steps. AI can’t ask follow-ups, spot red flags or think critically. R&D tax claims demand nuance, and bots don’t do nuance.
NEO.TAX CLAIM
“Skip the surveys and interviews.”
REALITY
These aren’t optional. Interviews help real professionals document what actually has happened in real time. An AI that’s never stepped foot in an office can’t verify anything.
NEO.TAX CLAIM
“Replace after-the-fact surveys and interviews with contemporaneous documentation, as per the IRS gold standard.”
REALITY
The IRS warns against using AI in place of expert judgment. That’s not the gold standard. That’s a shiny sales pitch, and it’s putting clients in jeopardy.
NEO.TAX CLAIM
“AI trained on IRS codes.”
REALITY
Knowing the tax code isn’t enough. AI might memorize a rule, but it can’t interpret it like a seasoned CPA or tax attorney. What else is it “trained” on? And who’s making sure it’s not messing up?
NEO.TAX CLAIM
“We found a problem where AI is necessary to win.”
REALITY
There is no “winning” if your clients are getting audited. AI isn’t solving a problem, it’s creating a new one. This isn’t a revolution. It’s a liability.
HOW NEO.TAX’S MODEL IS TRAINED
Neo.Tax sells its platform as the easiest, most accurate way to file taxes. But it’s built on rigid IRS code and pre-programmed inputs. Real R&D work doesn’t fit cleanly into boxes – and neither do compliant filings.
What they call “precision,” tax professionals call oversimplification.
That’s not cutting-edge. It’s cutting corners.