Quick answer
US CPA firms and wealth management firms seeking additional 1040s with initial review, without adopting a new platform, find Magnetic the better match. Its AI tax prep agent creates each 1040, a licensed US-based EA/CPA inspects the work prior to handoff, and the finished document arrives in 2 to 4 days on average, upload-ready for the tax software the firm already uses1. Black Ore suits organizations aiming to operate an enterprise-grade AI tax prep platform internally, where their own staff handle reviews for 1040, 1041, 1065 and K-1/K-3 filings2.
Both Black Ore and Magnetic use AI to process tax returns for tax firms, yet they differ on who controls the AI and performs the first check. Magnetic users submit client documents and receive a 1040 that a licensed EA/CPA has already verified1. Black Ore users, however, operate the AI tax software themselves and evaluate the generated output3. This section contrasts the two on AI operation, draft inspection, delivery timing and format, setup, return types, and data management. All data points derive from corporate websites or independent entries in the Sources list, validated in October 2026.
How do Black Ore and Magnetic compare side by side?
Magnetic delivers a reviewed 1040 draft to the firm, whereas Black Ore supplies the firm's team with a platform for preparing and reviewing returns itself.
| Magnetic | Black Ore | |
|---|---|---|
| What it is | AI tax prep agent for 1040s. A licensed US-based EA/CPA checks each return1, 4 | Tax Autopilot platform. An AI tax prep platform from a company that describes itself as enterprise-grade AI for the tax profession2 |
| Who runs the AI | Magnetic. The firm uploads a return's documents and gets one back, with no firm-wide AI rollout1 | The firm's team. Staff drag and drop client documents and Tax Autopilot prepares the return2 |
| Who reviews the draft first | A licensed US-based EA/CPA, on every return before delivery1 | The firm's own reviewers. Black Ore says Tax Autopilot runs a complex return's full lifecycle with no human intervention from the Black Ore team; every return arrives ready for the customer's final professional review5 |
| What comes back, and when | Upload-ready file, 2 to 4 days on average. For the firm's existing tax software, with every assumption and open item noted1 | Review-ready return in the platform. Workpapers and tie-outs included; Black Ore says it delivers audit-ready 1040s in minutes, not days. Mapped fields export to the firm's tax software3 |
| Setup | No new software, no API. The agent enters data through Magnetic's computer-use protocol4 | Adopt the Black Ore platform. Firm-specific rules and tax software integration3; the Enterprise plan includes custom implementation and firm training6 |
| Return types | Form 1040 individual returns1 | 1040, 1041, 1065 and K-1/K-3 automation2 |
| Data handling | Encrypted, US-only. AES-256 in transit and at rest; stored and processed only in the US; never used to train models under IRS section 7216; written information security plan (WISP) in force7 | AES-256 at rest, TLS 1.2+ in transit. US-based data centers; client documents never used for model training8 |
What is Magnetic?
Magnetic serves as an AI tax prep agent for 1040 returns, where a licensed US-based EA/CPA reviews each return prior to it reaching the firm1, 4. The company outlines the agent's process in four steps, read, reason, enter, then get checked. This involves processing 94+ document types, which include handwritten notes, Excel sheets, scans and smartphone photos, IRS forms, tax organizers and prior-year client files; Magnetic reports 99.9% accuracy across those supported document types4. The Magnetic agent then analyzes the entire return and inputs information into the firm's existing tax software using a computer-use protocol with no API4. It subsequently performs a final automated pass to verify all numbers against their original source files4. This step happens before the reviewing EA/CPA uses confidence scores and agent notes to identify areas requiring attention4.
Magnetic delivers an upload-ready file in 2 to 4 days on average, noting every assumption and open item, while offering up to three resubmissions at no extra cost if new client documents arrive1. Pricing is per return by complexity, using credits: a basic filing uses 1 credit, whereas a more intricate one consumes up to 31. Should Magnetic misenter or omit details from the uploaded documents, resulting in a change to the client's tax liability exceeding $10, Magnetic credits the prep fee, up to the amount charged for that specific return1. Adam Carr, an EA and the owner of Cornbelt Financial, states that using Magnetic reduced his preparation time from three and a half hours to thirty minutes1.
- Best fit for
- CPA firms and wealth management firms that need more 1040 capacity now, where every submission receives initial scrutiny from a licensed US-based EA/CPA, and there is no platform to roll out.
- Design trade-off
- The system targets Form 1040 returns and delivers a reviewed draft, instead of operating as software within the firm.
What is Black Ore?
Black Ore presents itself as enterprise-grade AI built for the tax profession, offering Tax Autopilot to deliver end-to-end autonomous tax preparation that automates 1040, 1041, 1065 and K-1/K-3 work2. For individual returns, the platform manages both straightforward and intricate 1040s, covering high-income scenarios as well as filings containing multiple complex K-1s, while reporting more than 99% accuracy in the extraction and classification of source documents3. The system generates filings in a review-ready state complete with tie-outs and workpapers, allowing reviewers to annotate, override and approve these documents within the platform according to firm-specific logic and sign-off policies3.
Black Ore says Tax Autopilot runs the full lifecycle of a complex return with no human intervention from the Black Ore team, and every return arrives ready for final professional review by the customer5. Kyle Parks, Leading Partner at Maxwell Locke & Ritter, notes that a high net worth case involving dozens of complex K-1s, which once took several days to prepare, now reaches a review-ready state in minutes2. Black Ore lists Standard plans by product alongside an Enterprise plan for large firms, with pricing on request for each; the Enterprise plan adds custom implementation and firm training6.
- Best fit for
- Organizations looking to operate an enterprise-grade AI system internally for 1040, 1041, 1065 and K-1/K-3 filings, where their staff handle the final professional review of each document.
- Design trade-off
- The firm's own staff operate the software and carry out the initial check on every return generated by the AI.
Which one fits your firm?
Magnetic suits practices that need more 1040s done now, while Black Ore serves those aiming to have their own staff operate an AI tax prep platform across various return types.
- Choose Magnetic when your practice requires additional 1040 capacity this season, with returns prepared and first-reviewed on your behalf. A licensed US-based EA/CPA examines each return, the average turnaround is 2 to 4 days, and the output is upload-ready for the tax software you already use, eliminating the need to learn a new system1.
- Choose Black Ore if your practice desires an enterprise-grade AI tax prep platform in-house, allowing your own reviewers to work within it across 1040, 1041, 1065 and K-1/K-3 returns2.
Practices considering other in-house AI tax software encounter the same distinction between operating the AI themselves and submitting a draft for licensed review first, which Magnetic covers, for onboarding and review, in its Filed vs Magnetic comparison.
FAQ
Is Black Ore or Magnetic better for CPA firms?
Magnetic suits CPA firms and wealth management firms requiring 1040s to be drafted and initially checked: its AI tax prep agent creates each return, a licensed US-based EA/CPA verifies it prior to delivery, and the document arrives in 2 to 4 days on average, upload-ready for the firm's current tax software1. Black Ore aligns with organizations wishing to operate an enterprise-grade AI tax prep platform in-house for 1040, 1041, 1065 and K-1/K-3 matters, with their staff handling the review2.
Who reviews the AI's work before the firm sees the return?
With Magnetic, a licensed US-based EA/CPA does, for every return1. For Black Ore, the firm's own reviewers take on this role: Black Ore states that Tax Autopilot handles complex returns with no human intervention from the Black Ore team, ensuring each document arrives prepared for final professional review by the customer5.
Does a CPA firm still need to review an AI-prepared return?
Yes. 31 CFR 10.22 mandates that practitioners apply due diligence when they prepare, approve, or file tax returns. If a practitioner depends on the work of others, the law presumes due diligence occurred provided the practitioner exercised reasonable care in selecting, overseeing, training, and assessing those individuals9. Magnetic classifies AI-generated content as drafts and mandates human oversight pursuant to Circular 230 sections 10.22 and 10.377. Black Ore submits every return to the customer for final professional review5.
Do I need new tax software or an API to use Magnetic?
No. Magnetic produces an upload-ready file compatible with the tax software the firm already uses1. The Magnetic agent inputs data via a computer-use protocol, not an API4. Black Ore also pushes mapped fields straight to a firm's prep system, keeping both preparation and review within the Black Ore platform3.
How does Magnetic charge for AI tax prep?
Per return, by complexity. Companies purchase credits, where a straightforward filing consumes 1 credit while a complicated one takes up to 3. The process includes up to three resubmissions at no extra cost. If a mistake made by Magnetic alters a client's tax liability by more than $10, Magnetic credits the prep fee, up to the amount it originally billed for that return1. Black Ore displays Standard plans by product alongside an Enterprise plan, noting that pricing is available on request6.
Sources
- Magnetic - AI-Powered 1040 Tax Return Service
- Black Ore - Enterprise-Grade AI for the Tax Profession
- Black Ore - 1040 Automation: AI Tax Prep for Individual Returns
- Magnetic - AI Overview
- Black Ore via GlobeNewswire - Black Ore Launches Tax Autopilot for Broad Availability
- Black Ore - Pricing
- Magnetic - Security
- Black Ore - The Standard in Secure Tax AI
- eCFR - 31 CFR 10.22, Diligence as to accuracy
Emily Walden
Emily Walden works on product marketing at Magnetic, the AI tax return completion service for CPA firms, tax firms and wealth management firms. Based in San Francisco, she has 10 years of experience in fintech software and writes about AI tax preparation, licensed review and how firms add 1040 capacity without adding headcount.
