ModernTax Company Profile

Background

Overview

ModernTax, founded in 2021 and headquartered in San Francisco, California, is a technology company specializing in providing secure, real-time access to tax records through its proprietary API platform. The company's mission is to enable organizations to request taxpayer permission to access their data, thereby enhancing product experiences within native applications.

Vision

ModernTax envisions a future where open tax data access allows instantaneous permission for businesses to offer financial services, conduct real-time transactions, and provide taxable event estimation notifications to consumers and businesses alike.

Key Strategic Focus

Core Objectives

Enhancing Financial Transparency: ModernTax aims to bridge the transparency gap in financial services by providing direct access to verified tax records, thereby facilitating better decision-making for financial institutions.

Streamlining Tax Data Access: The company focuses on simplifying the process of obtaining and verifying tax information, reducing operational inefficiencies, and mitigating risks associated with manual data handling.

Areas of Specialization

API Integration: ModernTax offers robust API solutions that enable seamless integration of tax data into existing financial applications.

Industry-Specific Solutions: The company provides tailored solutions for various sectors, including mortgage, insurance, small business, and government agencies.

Key Technologies Utilized

Proprietary Tax Record Network Platform: ModernTax's platform facilitates secure and efficient access to IRS-verified financial data.

Pre-built SDKs and Components: These tools allow for rapid deployment and integration of tax data access features within client applications.

Primary Markets Targeted

Financial Institutions: Banks, fintech companies, and other financial service providers seeking reliable tax data for underwriting and compliance purposes.

Insurance Companies: Insurers requiring accurate income verification for underwriting and claims processing.

Government Agencies: Public sector entities aiming to enhance tax compliance and data verification processes.

Financials and Funding

Funding History

As of 2020, ModernTax had raised approximately $1.4 million in funding.

Revenue

In 2020, the company reported revenues of $312.3K.

Utilization of Capital

The funds raised have been allocated towards product development, expanding technological capabilities, and scaling operations to meet the growing demand for tax data access solutions.

Technological Platform and Innovation

Proprietary Technologies

Tax Record API Platform: ModernTax's core technology enables secure, real-time access to tax records, facilitating seamless integration into client applications.

Significant Scientific Methods

Data Aggregation: The platform combines data from hundreds of sources to provide a comprehensive business tax library on U.S. non-public entities.

Secure Authentication: ModernTax employs robust authentication mechanisms to ensure secure access to sensitive tax data.

Leadership Team

Matthew Parker – Chief Executive Officer

Matthew Parker is the founder and CEO of ModernTax. With a background in tax preparation and financial services, Parker has been instrumental in developing the company's strategic vision and technological innovations.

Competitor Profile

Market Insights and Dynamics

The tax data access and verification industry is experiencing significant growth, driven by increasing demand for financial transparency and compliance. The U.S. commercial credit market alone is valued at approximately $8.8 trillion annually, highlighting the substantial opportunity for companies like ModernTax.

Competitor Analysis

Veri-Tax: Established in 1998, Veri-Tax specializes in delivering fast and reliable verification services, including income and employment verification, 4506-C tax transcripts, and SSN/EIN verifications.

TaxBit: Founded in 2018, TaxBit offers solutions for automating tax calculations and compliance, particularly in the digital asset space.

Taxually: Established in 2018, Taxually provides cloud-based tax compliance solutions, focusing on VAT registrations and filings.

These competitors offer various tax verification and compliance services, each with unique technological approaches and market focuses.

Strategic Collaborations and Partnerships

ModernTax has engaged in partnerships with data providers such as D&B, Experian, and TransUnion to enhance its data verification capabilities. Additionally, the company has collaborated with Enigma Technologies, marking its first paying partnership.

Operational Insights

Strategic Considerations

ModernTax differentiates itself through its API-driven platform that offers real-time access to IRS-verified tax data, reducing operational inefficiencies and enhancing decision-making processes for clients.

Market Position

By focusing on secure and efficient tax data access, ModernTax positions itself as a key player in the financial technology sector, catering to the needs of financial institutions, insurers, and government agencies.

Competitive Advantages

Real-Time Data Access: The ability to provide immediate access to verified tax records sets ModernTax apart from competitors relying on manual processes.

Comprehensive Data Aggregation: Combining data from multiple sources offers clients a holistic view of tax records, enhancing risk assessment and compliance efforts.

Strategic Opportunities and Future Directions

Strategic Roadmap

ModernTax plans to expand its customer base by adding new clients and launching additional features for its contributor portal and business user functionalities.

Opportunities for Expansion