IRSIE

Small Language Model for Tax Code Interpretation and Compliance

What IRSIE Does :

IRSIE transforms complex tax regulations into programmatic answers. Built by fine-tuning transformer models on the complete IRS regulatory corpus, it provides authoritative tax interpretations with source citations through a production API.

Core Capabilities :

• Tax Code Interpretation: Natural language queries return precise regulatory guidance
• Form Processing: Automated analysis of W-2, 1099, and standard tax forms
• Compliance Validation: Deterministic calculations using official IRS methodologies
• Source Attribution: Every response includes exact regulatory citations

Target Applications :

• Enterprise payroll compliance systems
• Tax professional research platforms
• Real estate investment calculators
• Small business automation tools
• Financial advisory tax planning modules

Min Performance SLAs :

• Inference Latency: P95 < 200ms per query
• Accuracy: 94.2% on IRS compliance benchmarks
• Availability: 99.9% API uptime
• Throughput: 1,000+ concurrent queries supported

Technical Specifications

Model Architecture

• Base: Fine-tuned transformer (12 layers, 768d hidden, 12 attention heads)
• Training Data: 2.8B tokens from complete IRS documentation (2020-2024)
• Context Window: 2,048 tokens maximum
• Vocabulary: 32,000 tokens (expanded for tax terminology)

System Components

Query Input → Classification → Document Retrieval → 
Model Inference → Validation → Cited Response

Infrastructure

• Vector Database: Pinecone with 384d embeddings
• Document Corpus: 847 IRS publications with semantic chunking
• Retrieval: RAG with cross-encoder reranking
• Framework: PyTorch + Hugging Face Transformers

Training Pipeline

1. Data Extraction: Complete Tax Code and IRS publications preprocessing
2. Semantic Chunking: Citation-linked document segments
3. Fine-tuning: Task-specific heads for classification and generation
4. RLHF Optimization: Human feedback for compliance accuracy
5. Validation: Deterministic calculation layer for numerical accuracy

API Interface

POST /api/tax/query
{
  "query": "What are the 2024 401k contribution limits?",
  "tax_year": 2024,
  "context": "individual"
}

Response:
{
  "answer": "The 2024 401(k) contribution limit is $23,000...",
  "sources": ["IRS Publication 560, Section 3.2"],
  "confidence": 0.96,
  "calculations": {...}
}

Technical Applications

Enterprise Tax Engine Integration

• Payroll Processing Systems: Real-time validation of withholding calculations against current IRS tables
• ERP Tax Modules: Automated compliance checking for multi-jurisdiction tax scenarios
• Financial Reporting Tools: Tax provision calculations with regulatory citation tracking
• Audit Trail Systems: Deterministic tax logic documentation for regulatory examinations

Specialized Financial Software

• Estate Planning Platforms: Complex inheritance tax calculations with multi-generational scenarios
• Investment Management: Tax-loss harvesting optimization with wash sale rule validation
• Real Estate Systems: 1031 exchange qualification analysis and depreciation scheduling
• Cryptocurrency Platforms: Digital asset taxation with cost basis tracking and reporting

Professional Service Applications

• Tax Preparation Software: Advanced research capabilities for complex client scenarios
• Legal Research Platforms: Tax law interpretation with cross-referenced regulatory citations
• Compliance Management: Automated gap analysis against evolving IRS requirements
• Financial Advisory Tools: Tax-optimized strategy recommendations with quantified impact analysis

Model Performance

• Training: 847 IRS publications (2020-2024)
• Validation: Cross-validated on held-out regulatory scenarios
• Benchmarks: 94.2% accuracy on standardized tax compliance tests
• Latency: Sub-200ms inference with citation retrieval

License

AGPL-3.0 - Open source with copyleft requirements for derivative works