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Document Intelligence

Tax teams face challenges with complex K-1s, footnotes, K-3s, and state reporting variations that require expert review and manual data extraction.

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THE SOLUTION

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In 2024, a Big 4 firm purchased Document Intelligence from Crimson Tree Software.

In 2025, it was successfully deployed, practice-wide, in the service of clients.

Lessons learned in building Document Intelligence were critical to our success in developing TIERS and Second Wind.

Document Intelligence is a modern AI solution that automates the retrieval of structured data from K-1s, K-3s, footnotes, and miscellaneous forms.

Following an in-depth, multilayered approach, it combines document structure analysis, table and outline comprehension, pattern recognition, vector embedding-based semantic modeling, and generative AI.

This new approach delivers a reliable, near-perfect standard of accuracy across hundreds of tax concepts, data types, and form variations.

A key advantage of Document Intelligence is its ability to precisely segment documents, to identify exactly where each footnote begins and ends.

When a footnote segment has been isolated and classified, that segment is processed by a specialized AI agent optimized for the exact footnote class.

This method dramatically reduces each agent’s cognitive load and significantly improves extraction quality.

Generative AI workflows are applied to a wide range of complex footnotes, including Form 926, Form 8621, Form 8865, Form 8886, Installment Sales, Electing Investment Partnerships (EIP), Section 199A, Section 1061, and State Sourced Income and Withholding.

Built for real-world use, Document Intelligence handles diverse K-1 and K-3 formats, unstructured overflow statements, specialized IRS schedules, and state-source income and withholding schedules.

Every extracted data point is visually annotated, enabling fast review, high confidence, and seamless exportability.

Document Intelligence gives tax professionals and financial institutions a powerful, transparent, and scalable solution that streamlines compliance and accelerates the delivery of high-quality K-1 and K-3 data.

CORE TECHNOLOGY COMPONENTS

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Multi-STRATEGY AI

  • Document structure analysis

  • Pattern recognition

  • Vector embedding semantic modeling

  • Generative AI processing

PRECISE SEGMENTATION

  • Footnote boundary detection

  • Classification & labeling

  • Context window optimization

  • Targeted processing routing

Quality Assurance

  • Confidence scoring

  • Visual annotations

  • Side-by-side comparison

  • Audit trail generation

Generative AI EXTRACTION

Used for complex, unstructured footnotes requiring interpretation:

  • Form 926

  • Form 8621

  • Form 8865

  • Form 8886

  • Installment Sales

  • Electing Investment Partnerships (EIP)

  • Section 199A

  • Section 1061

  • State Sourced Income & Withholding

Software Automation

  • Item Overflow: Values that don’t fit on form face

  • Item Detail: Sub-line-item detail values

  • Item Portions

    • UBTI (Unrelated Business Taxable Income)

    • ECI (Effectively Connected Income)

    • FDAP (Fixed, Determinable, Annual, Periodical)

    • Passive Income Footnotes

KEY ADVANTAGE: HYBRID APPROACH

By precisely segmenting documents and routing to the appropriate extraction method—generative AI for complex footnotes and software for structured data—Document Intelligence dramatically narrows context windows, improves accuracy, and delivers unmatched performance across all K-1 and K-3 data types.

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