Beware of AI-Driven "Pop Up" Tech Firms Like SPRX Masquerading as Tax Professionals
(Tax Watch America) - It's tax season and consulting firms are touting their quick and easy services to relieve the stress caused by filing complex returns.
However, this year, businesses should be on the lookout for AI-driven "pop up" technology firms pretending to be expert tax consultants—their speedy "solutions" might land you an audit rather than tax credits.
One of the worst of these shady "fly-by-night" scamsters is a company called SPRX. Their CEO Dominic Vitucci is notorious for making claims that are too good to be true or flat out misleading, ranging from attacking the expertise of CPAs to downplaying the risks of IRS audits.
For example, Vitucci argues SPRX's AI model represents the true "expert" in the field rather than CPAs, stating, "You know what's a real expert? An AI model that is trained on the entire body of R&D tax credit rules."
He even admits SPRX "entirely automates the R&D tax credit claiming process using AI."
But to credibly claim R&D tax credits requires careful legal and regulatory analysis—beyond what AI models are capable of.
These types of claims echo the 2023 IRS "Dirty Dozen" list, which included firms that aggressively marketed the Employee Retention Credit (ERC) with misleading promises. The IRS also cautioned against over-relying on AI for tax filings, emphasizing that AI lacks the ability to make complex, accurate legal determinations.
A true tax professional would acknowledge the risk of overreliance on AI, yet SPRX's CEO never does. Nor does he explain what steps his firm takes to ensure their AI is generating accurate and defensible analysis for their clients.
Vitucci tries to console potential clients, stating SPRX will "represent them in an IRS exam if an agent ever questions our report." However, SPRX hasn't been around long enough for any of their clients to have been audited.
SPRX fails to mention that if their AI-generated tax advice results in an audit, their customers, not the firms themselves, are held legally liable. It remains unclear if SPRX would also represent clients in these scenarios during court proceedings.
AI can be risky during audit preparedness too. AI-generated claims may lack the necessary documentation and substantiation required to withstand an IRS audit, leaving taxpayers exposed to financial and legal risk.
All of these false or misleading claims paint a clear picture of SPRX: their overreliance on AI for R&D tax credits is a risk businesses cannot afford to take.