QWED-Tax: Overview
"Death, Taxes, and Deterministic Verification."
QWED-Tax is the deterministic verification layer for Agentic Finance. It protects AI Agents from making costly tax errors by proofing inputs against IRS (US) and CBDT (India) rules before any transaction is executed.
🚨 The Problem
AI agents (LLMs) are handling payroll and tax, but they are largely illiterate in tax law. They hallucinate rates, misclassify workers, and ignore nexus thresholds.
Real World Failures
| Scenario | LLM Hallucination | QWED Verdict |
|---|---|---|
| Worker Hire | "Hiring contractor (1099) who uses my laptop" | 🛑 BLOCKED (Misclassification Risk) |
| Sales Tax | "No tax in NY for $600k sales" | 🛑 BLOCKED (Nexus Violation) |
| Payroll | "FICA Tax on $500k = $31,000" | 🛑 BLOCKED (Limit is $176k / ~$10k tax) |
🧾 Accounts Payable (AP) Automation
qwed-tax now secures the entire "Procure-to-Pay" cycle for AI Agents:
- Validation: Checks GSTIN/VAT ID formats.
- Compliance: Blocks Input Tax Credit (ITC) on "Personal" categories (Food, Cars, Gifts).
- Withholding: Auto-calculates TDS/Retention amounts before commercial payment.
🧠 Procedural Accuracy (MSLR Aligned)
Unlike standard calculators, qwed-tax verifies the procedure, not just the result. This aligns with Multi-Step Legal Reasoning (MSLR) to prevent "Right Answer, Wrong Logic" errors.
- Step 1: Sanction Check $\rightarrow$ Is this transaction legal? (e.g.,
RelatedPartyGuardblocks illegal loans before rate checks). - Step 2: Limit Check $\rightarrow$ Is it within quota? (e.g.,
RemittanceGuardchecks LRS limit before TCS). - Step 3: Calculation $\rightarrow$ Apply math.
🏗️ Architecture: The "Swiss Cheese" Defense
QWED-Tax acts as the Pre-Flight Middleware between your AI Agent and Fintech APIs (like Gusto, Stripe, or Avalara).
🔒 Zero-Data Leakage
Unlike cloud APIs check (Avalara/Vertex), qwed-tax runs 100% Locally.
- Privacy First: Your payroll/trading data never leaves your server.
- No API Latency: Checks are instant (microseconds).
- GDPR/DPDP Compliant: Ideal for sensitive Fintech environments.
📦 Installation
pip install qwed-tax