Despite advances in digital filing and tracking, paying business taxes remains fragmented and a burden for many small businesses and accounting firms. Artificial intelligence is changing that by helping businesses verify tax payments, send real-time alerts, and avoid costly penalties and missed deadlines. In the future, AI has the potential to further streamline tax processes, providing deeper insights, automation, and more proactive compliance support.
On today’s episode of Business Trends Today, we’re joined by Solon Angel, CEO and co-founder of Remitian, to discuss how AI is reshaping the final step of the tax process.
The problem with modern tax filing systems
According to Angel, the challenges stem from decades of disconnected government portals, outdated banking practices, and limited visibility into whether payments actually go through. Angel says the modern tax payment system evolved from paper checks to digital payments and multiple portals independently created by federal, state, and local governments.
“They couldn't catch Al Capone because he killed people, they caught him because of taxes ... Most people want to stay in compliance and out of jail, but the current system makes it hard.”
Angel adds that banking infrastructure, built around sensitive ACH routing information, further complicates automation and secure data sharing.
“You’re not supposed to share that with every stranger,” Angel said. “So there’s a mix of the old world before the internet where people just share openly the ACH number, routing numbers and bank accounts with people that store it in spreadsheets.”
As a result, many business owners are forced to manage multiple tax payment platforms across jurisdictions, sometimes logging into more than a dozen systems to stay compliant.
The “break point” between filing and payment
While tax filing has largely been digitized, Angel says the breakdown often occurs after returns are completed.
Angel points to two key gaps: accountants who often lack visibility into whether payments were successfully processed, and government systems that may issue penalties for failed or missed payments that business owners may not discover until later.
Angel says this creates additional risk for small business owners, who lack the time and resources to closely monitor payment execution across multiple accounts and systems.
“Most small business owners don’t have a year of cash flow, so if there’s a special assessment of anything, there’s a disjointed process,” Angel said. “If a state authority or the IRS decides that there was a problem with the payment, they will fine you bluntly and you’ll discover it after the fact.”
AI processing could save $85 billion in penalties and compliance costs annually
Inefficiencies in the current system result in approximately $85 billion in late fees and penalties annually. Angel calls that a “double tax,” noting that businesses already pay federal, state and local obligations but then incur additional costs due to administrative breakdowns in the payment process.
Angel adds that government agencies, including the IRS, are not focused on generating penalties but rather on ensuring timely collection. This makes inefficiencies a structural issue rather than an intentional outcome.
Pressure builds on accounting firms as deadlines approach
While many small business owners rely on accountants or accounting firms to handle their taxes, Angel says the system is not foolproof. He notes that firms face increased pressure during peak tax season, where mistakes can still happen.
Angel says accounting firms often deal with staffing shortages, long hours, and the added burden of chasing down client documentation. Payment and processing errors can also be costly for tax professionals.
“The last thing they want to do is redo work,” Angel said. “They want the clients to pay on time. They want to get the job done and move on to the next tax season.”
How AI is closing the tax filing gap
According to Angel, artificial intelligence is improving the tax payment process by adding automation, visibility, and proactive alerts. He says AI systems can verify whether payments have gone through successfully, monitor account balances in real time, and send text or email alerts before deadlines arrive. AI can also recommend actions, such as partial payments, to help prevent penalties.
Angel shared a personal example of how the system can fail without automation.
“One day, I was hit with a pretty large penalty, tens of thousands of dollars. I had no idea that I was delinquent,” Angel said. “I forgot at some point that there was a tax that I was supposed to pay. By the time I learned, it was months later.”
Angel says the goal is to create an “invisible layer” that streamlines payment processing and reduces the risk of missed payments.
Opportunity for SMBs and accounting firms
The primary benefit for small business owners is “peace of mind,” allowing them to focus on operations rather than tax compliance logistics according to Angel.
For accounting firms, Angel says AI-driven tools present an opportunity to improve client experience, reduce rework, and differentiate services in a competitive market. Firms that prioritize client experience are more likely to generate referrals and long-term growth.
While tax filing systems have modernized significantly, Angel argues that tax payments remain one of the most outdated parts of financial infrastructure. He says AI could eventually automate tax payment processes, providing real-time error detection, predictive analytics for cash flow, and seamless integration with other financial systems. This has the potential to reduce penalties, improve visibility, and ease administrative pressure on both business owners and accounting firms.
Ultimately, adopting AI in tax payment processes could mark a pivotal advance, aligning this last phase with the broader modernization of financial systems.
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