Version: 1.7.3

Model Context Protocol (MCP)

The TaxBandits Model Context Protocol (MCP) API provides a unified, AI-driven interface to automate tax compliance workflows within your application.

It integrates artificial intelligence (AI) with tax automation through the MCP framework, allowing you to interact with the system via natural language, reducing the need for manual form-filling and administrative tasks.

With the MCP server, you can issue simple, conversational commands, and the system automatically processes the relevant tax forms and submits them to the IRS, all with minimal input from you.

Key Features

Zero Installation: No local setup is required. Just add a line to your configuration and start processing.
Universal Platform Support: Compatible with desktop, web-based tools, and mobile devices.
Enterprise Security: All data is processed on our secure production-grade infrastructure with encryption and compliance built in.

How It Works

Integrating with the TaxBandits MCP Server is quick and easy. Follow the steps below to get started.

1. Authentication

The TaxBandits MCP server supports two authentication methods:

OAuth (Recommended)

The TaxBandits MCP server uses OAuth 2.1 for secure, granular access control. When you add TaxBandits MCP to your client, the authentication happens automatically through your CLIENT_ID and API_KEY. You can obtain your Client ID and MCP API Key from the TaxBandits Developer Console: sandbox.taxbandits.com

Benefits

More secure than exposing credentials
Automatic token refresh
User-based rate limiting
Encrypted token storage

How it works

Your MCP client connects using credentials in the URL
TaxBandits MCP server handles the OAuth flow with the TaxBandits API
Access tokens are automatically refreshed when expired
All requests are authenticated on your behalf

No manual OAuth management required — The server handles all token lifecycle operations automatically.

API Key Authentication (For Autonomous Agents)

If you're building agentic software, pass a TaxBandits API key as a bearer token to the MCP server.

Important: Use restricted API keys to limit access to only the functionality your agent requires.

Example: Authorizing with OpenAI's Responses API

curl https://testapi-aimcp.taxbandits.com/ \
  -H "Content-Type: application/json" \
  -H "Authorization: Bearer ?authentication=YOUR_CLIENT_ID,YOUR_API_KEY" \
  -d '{
      "jsonrpc": "2.0",
      "method": "tools/call",
      "params": {
          "name": "create_1099_nec",
          "arguments": {
          "recipient_name": "Jane Doe",
          "recipient_tin": "123-45-6789",
          "amount": 5000
          }
      },
    "id": 1
  }'

2. Configure the MCP-Compatible Client

After authentication, configure your MCP-compatible tool (such as Cursor or VS Code with Cline) to connect to the TaxBandits MCP server.

This involves adding the MCP server configuration with:

Server URL
Authentication parameters (User ID and API Key)
Transport type (SSE)

Once configured, your client can communicate directly with the TaxBandits MCP server.

Tool-Specific Instructions

Platform Installation Guide

Platform	Installation Guide
Cursor	Open Cursor Settings: Click on the Cursor menu → Settings Navigate to: Features → MCP Servers Add Configuration: `{ "mcpServers": { "taxbandits": { "url": "https://testapi-aimcp.taxbandits.com/sse?authentication=User_ID,MCP_APIKey", "transport": "sse" } } }`
VS Code (Cline)	Open Cline MCP Settings: Press Cmd/Ctrl + Shift + P Type: "Cline: Open MCP Settings" Or navigate to: `.vscode/cline_mcp_settings.json` Add TaxBandits Server Configuration: `{ "mcpServers": { "taxbandits": { "url": "https://testapi-aimcp.taxbandits.com/sse?authentication=User_ID,MCP_APIKey" } } }`
Other	Standard configuration format: `{ "mcpServers": { "taxbandits": { "url": "https://testapi-aimcp.taxbandits.com/sse?authentication=User_ID,MCP_APIKey", "transport": "sse" } } }`

Cursor

Open Cursor Settings:
- Click on the Cursor menu → Settings
- Navigate to: Features → MCP Servers
Add Configuration:

{
 "mcpServers": {
   "taxbandits": {
     "url": "https://testapi-aimcp.taxbandits.com/sse?authentication=User_ID,MCP_APIKey",
     "transport": "sse"
   }
 }
}

VS Code (Cline)

Open Cline MCP Settings:
- Press Cmd/Ctrl + Shift + P
- Type: "Cline: Open MCP Settings"
- Or navigate to: .vscode/cline_mcp_settings.json
Add TaxBandits Server Configuration:

{
 "mcpServers": {
   "taxbandits": {
     "url": "https://testapi-aimcp.taxbandits.com/sse?authentication=User_ID,MCP_APIKey"
   }
 }
}

Other

Standard configuration format:

{
 "mcpServers": {
   "taxbandits": {
     "url": "https://testapi-aimcp.taxbandits.com/sse?authentication=User_ID,MCP_APIKey",
     "transport": "sse"
   }
 }
}

3. Execute Tax Operations

The MCP server performs the requested actions using available tools:

Automates W-9 collection workflows
Generates and validates tax forms
Submits forms electronically to the IRS
Stores and manages tax data securely

Tools and Functions Available

The following functions are available for integration with the TaxBandits Remote MCP server. If you have feedback or would like to see additional tools, please contact us at developer@taxbandits.com.

Note: For enhanced security, we recommend enabling human confirmation for these tools and exercising caution when integrating them with other MCP servers to prevent potential prompt injection attacks.

Category	Tool	API Reference
Business	create_business	Create business
W-9	request_w9_by_email	Request W-9
	get_w9_status	Get W-9 status
	list_w9	List W-9s
	get_w9	Get W-9 PDF
1099-NEC	create_1099_nec	Create 1099-NEC
	validate_1099_nec	Validate 1099-NEC
	transmit_1099_nec	Transmit to IRS
	get_1099_nec_pdf	Get 1099-NEC PDF
	request_pdf_urls_1099_nec	Get PDF URLs

Business Creation

create_business
Register a new business entity in TaxBandits for tax filing.

Parameters:

    {
      "business_name": "Acme Consulting LLC",
      "ein": "12-3456789",
      "business_type": "LLC",
      "address": {
        "line1": "123 Main St",
        "city": "San Francisco",
        "state": "CA",
        "zip": "94102"
      }
    }   

Returns: Business ID for use in subsequent tax operations

W-9 Automation

request_w9_by_email
Send a W-9 request to recipients via email.

Parameters:
```
    {
      "email": "contractor@example.com",
      "name": "John Smith",
      "business_id": "bus_abc123"
    }
```
What happens:

a. Email sent to recipients with secure W-9 form link
b. Recipient completes form online
c. You receive a notification when completed
d. W-9 stored securely in TaxBandits

get_w9_status
Check real-time completion status of W-9 requests.

Parameters:

    {
      "request_id": "w9_req_xyz789"
    }

Returns:

    {
        "status": "completed",
        "completed_date": "2024-01-15",
        "recipient_name": "John Smith",
        "tin": "123-45-6789"
    }

list_w9
List all W-9 forms with filtering options.

Parameters:

    {
      "status": "completed",
      "from_date": "2024-01-01",
      "to_date": "2024-12-31"
    }

get_w9
Download completed W-9 form as PDF.

Parameters:
```
    {
      "w9_id": "w9_abc123"
    }
```
Returns: PDF document with digital signature

1099-NEC Automation

create_1099_nec
Generate 1099-NEC forms for independent contractors.

Parameters:

   {
      "recipient_name": "Jane Doe",
      "recipient_tin": "123-45-6789",
      "amount": 5000,
      "tax_year": 2024,
      "payer_business_id": "bus_abc123"
    }

Auto-validates:

TIN format
Amount thresholds ($600 minimum)
Required fields per IRS specifications
State filing requirements

validate_1099_nec
Pre-submission validation with detailed error checking.

Parameters:

    {
      "form_id": "1099nec_xyz789"
    }

Returns:

    {   
        "valid": true,
        "errors": [],
        "warnings": [
            "State filing required for CA"
        ]
    }

transmit_1099_nec
Submit forms directly to the IRS via electronic filing.

Parameters:

   {
    "form_id": "1099nec_xyz789"
    }

Returns:

    {
      "submission_id": "sub_abc123",
      "status": "accepted",
      "irs_confirmation": "2024-IRS-1099-123456"
    }

get_1099_nec_pdf
Generate recipient and IRS copies as PDFs.

Parameters:

    {
      "form_id": "1099nec_xyz789",
      "copy_type": "recipient"
    }

Sample Workflows

Onboard New Contractor

User Input:
 "Add Sarah Johnson as a contractor.
      Email: sarah@freelance.com
      Address: 456 Oak Ave, Austin, TX 78701
      Send her W-9 request."

System Response:
    ✓ Creating contractor profile...
    ✓ Sending W-9 request to sarah@freelance.com...

    Sarah Johnson added successfully.
    W-9 request sent. You'll be notified when completed.

Year-End 1099 Filing

User Input:
  "Generate 1099-NEC forms for all contractors
   who earned $600+ in 2024."

System Response:
  Analyzing contractor payments...
  
    Found 15 contractors meeting threshold:
    - John Smith: $5,000
    - Jane Doe: $12,500
    - Mike Wilson: $8,750
    ... (12 more)
  
    ✓ Generated 15 forms
    ✓ Validated all data
    ✓ Ready for IRS submission
  
    Would you like me to submit these to the IRS?

Check Filing Status

User Input:
 "What's the status of our 2024 1099 filings?"

System Response:
 2024 1099-NEC Filing Status:
  
    ✓ Submitted: 15 forms
    ✓ IRS Accepted: 15 forms (100%)
    ✓ Recipient Copies: Emailed
  
    Last submission: January 28, 2024
    IRS Confirmation: 2024-IRS-1099-789456

Rate Limits

Tire	Limit	Notes
Per User	100 requests/minute	Configurable per customer
Burst Protection	10 requests/second	Per user maximum
Server Global	1,000 requests/minute	Platform-wide throttling

Rate limits are enforced per authenticated user, not by IP address.

Security

Data Protection

Encryption at rest: For all sensitive data
Encryption in transit: TLS 1.2 and above for all communications
Data minimization: Store only required information
Token security: OAuth tokens encrypted with rotation

Compliance

SOC 2 Type II: Audit-ready logging and monitoring
GDPR compliant: Data minimization and user rights
IRS Publication 1075: Federal tax data security standards

Audit Trail

Every action is logged with:

User context and IP address
Tool name and parameters
Success/failure status
Execution time
Sanitized request/response data

Coming Soon

W-2 form support - Employee payroll tax forms
1099-MISC - Miscellaneous income reporting
State tax forms - Multi-state filing automation
QuickBooks connector - Direct accounting sync
Zapier integration - No-code workflow automation
White-label options - Custom branding for agencies

Want early access? Email developer@taxbandits.com

Last updated: January 2026

API Version: v1.0

MCP Protocol: 1.0.0

W-9/W-8 Automation

1099 Automation

TIN Matching

W-2 Automation

941/940 Automation

1098-T Automation

ACA Automation

Extension Automation

1042-S Automation

Supported Forms

Gig Software

Payroll Software

Affiliate Software

HOA Software

Reselling Platform

HCM Providers

Property Management

Healthcare Market Research Platforms

Model Context Protocol (MCP)

Key Features​

How It Works​

1. Authentication​

OAuth (Recommended)​

Benefits​

How it works​

API Key Authentication (For Autonomous Agents)​

2. Configure the MCP-Compatible Client​

Tool-Specific Instructions​

3. Execute Tax Operations​

Tools and Functions Available​

Business Creation​

W-9 Automation​

1099-NEC Automation​

Sample Workflows​

Onboard New Contractor​

Year-End 1099 Filing​

Check Filing Status​

Rate Limits​

Security​

Data Protection​

Compliance​

Audit Trail​

Coming Soon​

Key Features

How It Works

1. Authentication

OAuth (Recommended)

Benefits

How it works

API Key Authentication (For Autonomous Agents)

2. Configure the MCP-Compatible Client

Tool-Specific Instructions

3. Execute Tax Operations

Tools and Functions Available

Business Creation

W-9 Automation

1099-NEC Automation

Sample Workflows

Onboard New Contractor

Year-End 1099 Filing

Check Filing Status

Rate Limits

Security

Data Protection

Compliance

Audit Trail

Coming Soon