What is an automated tax status update?
Short answer
An automated tax status update is a short text, WhatsApp or email sent when a client's return moves to a new stage, so the client hears from the firm before calling.
What it is
The stages are the firm's own: documents received, in preparation, waiting on you (with the missing item), ready to review, signed, e-filed, accepted by the IRS. When a return moves, the system sends the client one plain message in their language. Nothing is sent when nothing happened.
The messages are informational, so they are permitted when the client gave their number for that purpose, and every one carries a way to opt out.
Why it matters for a tax firm
In a bilingual practice of a thousand clients, status questions took most of the phone time before updates were automated. A message at each stage removes the reason for the call and gives the client a record.
How XyloDocs handles it
XyloDocs sends status updates in English or Spanish on each stage change, over the channel the client uses, and its voice agent answers the clients who still prefer to phone.
Related terms
Read more on XyloDocs
Questions about Automated tax status update
How many status messages should a client get?
One per real stage change, usually five to seven across a season. Daily "no update" messages train clients to ignore the channel.
Can a status update include the refund date?
The firm does not know the refund date. The update can say the return was accepted and point the client to the IRS "Where's My Refund?" tool.
Last reviewed: October 16, 2026. This glossary explains terms; it is not legal or tax advice. Check the cited source for the current rule.
Stop chasing documents and status calls
XyloDocs is the AI client communication platform for tax firms: bilingual calls and texts, document intake over WhatsApp and email, and status updates clients read before they phone.