Tax Calculation Graph for Dynamic Tax Recommendations
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Solution Overview
Problem
Tax preparation is a time-consuming and laborious process, with existing software relying on rigid user interfaces and not effectively utilizing declarative data structures to provide dynamic tax calculations and recommendations.
Innovation Solution
A tax preparation system utilizing declarative data structures such as completeness graphs and tax calculation graphs to dynamically calculate tax liabilities and provide tax recommendations, allowing for a loosely connected user interface and identifying controllable tax variables to suggest adjustments for reducing tax liability.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional rigid user interfaces are used for tax preparation software, then the system structure is simple and easy to implement, but the user interaction is cumbersome and the tax preparation process is time-consuming
Solution Approach 1:
The patent implements dynamic tax calculation graphs that automatically update as users input data, replacing static rigid interfaces. The system dynamically determines which questions to ask based on current data state and tax rules, adapting the interaction flow in real-time to reduce unnecessary user actions and time consumption.
Solution Approach 2:
The system performs automatic tax calculations and recommendations without requiring manual navigation through rigid interface structures. The tax calculation engine autonomously processes data, evaluates tax rules, and generates recommendations, allowing the system to serve itself in performing complex tax analysis without proportionally increasing user interaction burden.
2Adaptability or versatility
If declarative data structures are used to represent tax rules and calculations, then the system provides dynamic tax calculations and flexibility, but the device complexity increases
Solution Approach 1:
The patent segments the tax calculation system into distinct modular components: tax rules stored as declarative data structures, tax calculation graphs representing computation logic, and a tax calculation engine executing the calculations. This segmentation allows each component to be independently managed, reducing overall system complexity while maintaining adaptability.
Solution Approach 2:
The patent introduces a tax calculation graph as an intermediary data structure that bridges the declarative tax rules and the calculation engine. This intermediary translates complex tax rules into a structured computational format, managing the complexity of interactions between rules and calculations while enabling dynamic tax computation.
3Productivity
If the system analyzes tax calculation graphs to identify controllable variables and provide recommendations, then the value and usefulness of the system increases, but the computational complexity and processing time increase
Solution Approach 1:
The system performs preliminary analysis of the tax calculation graph to identify controllable variables and their impact on tax liability before generating recommendations. By pre-analyzing the calculation structure and determining which variables the user can control, the system avoids unnecessary computational complexity during the recommendation generation phase, improving efficiency while maintaining high recommendation quality.
Data Source
AI summary
Systems, methods and articles of manufacture for determining tax recommendations for a taxpayer by using a tax calculation graph to identify tax variables that a taxpayer can control and modify. The tax preparation system of comprises a recommendation engine configured to analyze a tax calculation graph which is calculated using tax data of the taxpayer. The recommendation engine determines tax variables from the tax calculation graph which can affect the tax result. The recommendation engine analyzes these tax variables to determine which of them can be reasonably controlled by the taxpayer using a controllability model. The recommendation engine then executes a tax calculation engine to calculate the tax calculation graph by varying the taxpayer controllable variables to determine how varying the user controllable variables affects the tax result. The recommendation engine then analyzes the affect on the tax result and determines one or more tax recommendation for the taxpayer.