AI Estimated Tax Notice Agent

How Cassidy automates using AI

Step 1: Trigger on new notice or document upload

The Workflow activates when a CP30 or CP30A notice is uploaded, received via email, or flagged in your document management system—pulling in the notice PDF, client's filed 1040, and any attached Form 2210.

Step 2: Extract and reconcile payment data

Cassidy parses notice details, retrieves IRS transcript data, and matches all prepayments (withholding, EFTPS, Direct Pay) against installment due dates to identify underpayment segments, misapplied credits, or transcript timing issues.

Step 3: Compute penalty and test safe harbors

The Workflow runs dual-path penalty calculations—standard method and Annualized Income Installment Method via Schedule AI—while testing 90% current-year and 110% prior-year safe harbor thresholds based on the client's AGI and filing status.

Step 4: Screen waiver and abatement pathways

Cassidy evaluates eligibility for disaster relief (checking ZIP codes against federally declared disaster windows), retirement/disability waivers, and IRS computational error corrections, flagging the strongest relief pathway for each case.

Step 5: Draft response package with IRS meta-language

The Workflow generates a complete response package: cover letter citing CP30 facts and IRM 20.1.3 references, Form 2210 with correct elections and Schedule AI, sworn statement text blocks where required, and an exhibit list linking payment proofs and transcript excerpts.

Step 6: Route for review and track resolution

Cassidy sends the draft package for Human-in-the-Loop approval, then creates follow-up tasks for phone advocacy (with PRC and TC reference scripts), monitors transcripts for TC 171/177 abatement entries, and calendars future ES installments to prevent recurrence.