Avalara rolls out AI tax research bot

Tax solutions provider Avalara announced the release of its newest AI offering, Avi for Tax Research, a generative AI-based solution that will now be embedded in Avalara Tax Research. The model is trained on Avalara’s own data, gathered over two decades, which the bot will use for contextually aware, data-driven answers to complex tax questions. 

“The tax compliance industry is at the dawn of unprecedented innovation driven by rapid advancements in AI,” said Danny Fields, executive vice president and chief technology officer of Avalara. “Avalara’s technology mission is to equip customers with reliable, intuitive tools that simplify their work and accelerate business outcomes.”

Avi for Tax offers the ability to check the tax status of products and services using plain language queries to receive trusted, clearly articulated responses grounded in Avalara’s tax database. Users can access real-time official guidance that supports defensible tax positions and enables proactive adaptation to evolving tax regulations, as well as obtain sales tax rates tailored to specific street addresses to facilitate compliance accuracy down to local jurisdictional levels. The solution comes with an intuitive conversational interface that allows even those without tax backgrounds to use the tool. 

For existing users of Avi Tax Research, the AI solution is available now with no additional setup required. New customers can sign up for a free trial today. 

The announcement comes shortly after Avalara announced new application programming interfaces for its 1099 and W-9 solutions, allowing companies to embed their compliance workflows in their existing ERP, accounting, e-commerce or marketplace platforms. An API is a type of software bridge that allows two computer systems to directly communicate with each other using a predefined set of definitions and protocols. Any software integration depends on API access to function. Avalara’s API access enables users to directly collect W-9 forms from vendors; validate tax IDs against IRS databases; confirm mailing addresses with the U.S. Postal Service; electronically file 1099 forms with the IRS and states; and deliver recipient copies from one central location. Avalara’s new APIs allow for e-filing of 1099s with the IRS without even creating a FIRE account.