Tax-ready methodology & limitations

Close Graph is Lawenots' named period-close model. Production readiness today is a weighted score over shipped DB-backed gates (transactions, reconciliations, ledger balance, settlement↔GL, open AR invoices, open AP bills). Roadmap types (compensation import expectations, hash-chained carry-forward) are labeled separately and do not yet change the workspace close score.

Revenue / AR, settlement, and compensation aim at the same abstraction: typed expectation objects that feed readiness and Verify. Today, customer invoices and vendor bills are the shipped AR/AP path with GL posting. Compensation import expectations remain roadmap for the production close score.

• Revenue / AR (shipped): Mark Sent posts receivables; unpaid SENT invoices block close; Mark Paid applies cash.
• Settlement (shipped gate): should-settle vs did-settle with GL coupling on settlement anchors.
• Compensation (roadmap): provider register imports evaluated for Verify; not yet a weighted workspace close gate.

Lawenots never moves money, runs disbursement, or becomes a payroll tax engine in this model. It posts AR/AP journals when invoices and bills are advanced, reconciles settlement evidence to GL, and blocks close while shipped gates remain open.

Each Close Graph node moves through the same lifecycle: open → matched → settled → attested → carried-forward. The period readiness score is a deterministic rollup of node weights and node states.

readiness = round((sum(weight for passed nodes) / sum(all node weights)) * 100)

• Shipped score uses weighted DB gates (transactions, recon, ledger, open AR, open AP).
• Open shipped gates are blockers; roadmap node types do not yet affect the production score.
• The score is reproducible from the serialized checks, weights, and close policy — not a black box.

A close package is a serialized period subgraph for CPA or auditor review — not just a zip of PDFs. It contains the graph state, ledger outputs, issue history, and integrity metadata needed to reproduce what Lawenots scored and exported.

• Period readiness checks (weights, pass/fail, issue classes)
• Locked trial balance and statement exports
• Lawenots Verify findings for import / native close
• AR/AP invoice and bill status with GL journal references when posted
• Export receipts with SHA-256 content hashes and source revision
• Close + Attest metadata when enabled (Merkle root, Ed25519 signature, public key id)
• Roadmap: serialized subgraph with hash-chained node timeline + carry-forward notes

Planned: every graph mutation records previousEventHash + eventBodyHash + actor + timestamp. Today, audit activity logs and readiness checklists are the shipped evidence trail. Carry-forward is also a formal graph transition: open -> carried_forward. It only passes readiness when the operator supplies a reviewer-visible, content-hashed note.

{
  "nodeId": "node_ap_2026_05_vendor_17",
  "reason": "Vendor invoice received after cutoff; obligation carried to 2026-06 close.",
  "contentSha256": "4f2a8d...c913",
  "reviewerVisible": true
}

Lawenots Verify is the close-blocker classifier behind both native period close and the standalone Close Readiness Check. Import QuickBooks, Xero, or CSV — or run against books already on Lawenots — and get a readiness score, fix list, and content-hashed readiness report.

Firm / CPA mode lets a reviewer run the check across client books they do not own. Every blocker cleared in the check is one step toward running the whole close on the Close Graph. Positioning: Lawenots can review any books and close them.

Run the Close Readiness Check →

Lawenots produces working papers and export artifacts (including Form 8949–compatible schedules) from your books and lot engine. “Tax-ready” means figures are traceable to underlying transactions and lots, generated under an explicit lot method, and accompanied by an export receipt (content hash + source revision). It does not mean CPA attestation, IRS acceptance, or filing on your behalf.

Lawenots is not a CPA firm, enrolled agent, or tax attorney. Confirm all outputs with your tax professional before filing.

• Posted books transactions and ledger entries for the selected period
• Lot acquisitions/disposals (cost basis, proceeds, holding period)
• Configured lot method (FIFO / Specific ID where enabled)
• Bank feed and import provenance (when connected)
• Optional settlement anchors coupled to the general ledger

• Amounts are in the organization’s functional currency unless stated otherwise
• Dates use the organization’s books timezone for day boundaries
• Wash-sale detection is advisory and rule-based; edge cases may need manual review
• Corporate actions (splits/mergers) require lot adjustments to be recorded before export
• Missing categories or open reconciliations block period close via readiness checks

• Wash sale (30-day window): disposal at a loss followed by substantially identical repurchase — flag + basis adjustment advisory
• Partial lot disposition: Specific ID override vs FIFO remainder
• Transfer in / transfer out: basis carries; no spurious gain
• Multi-leg same-day trades: chronological lot consumption
• Reconciled period export: readiness score 100% before 8949 CSV

Every disposal on a tax export traces to a lot record with acquisition date, basis, and source transaction id. Export receipts record a SHA-256 of the artifact body plus sourceRevision so you can prove what was generated — then verify each line against underlying lots in the product or via your CPA.

• FIFO — default consumption order for disposals
• Specific ID — per-disposal lot selection when enabled on the org
• Transfer in/out — basis carries; no spurious gain on internal moves

Lawenots Verify classifies mismatches before period close. The table below states what the product automates and what still requires operator or firm judgment.

Form 8949 exports ship with a receipt like the JSON below. Verify the content hash with @lawenots/attestation-verify.

{
  "receiptId": "a1b2c3d4e5f6a1b2c3d4e5f6",
  "formType": "8949",
  "organizationId": "org_demo",
  "periodId": "period_2026_q2",
  "generatedAt": "2026-07-16T12:00:00.000Z",
  "contentSha256": "e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855",
  "sourceRevision": "workspace-live",
  "disclaimer": "This receipt proves artifact integrity at generation time. It is not a CPA attestation or tax advice. Verify figures against underlying lots and transactions before filing."
}

Every exported tax figure should link back to lots and source transactions. Export receipts record a SHA-256 of the artifact body, generation timestamp, organization id, optional period id, and source revision. Use the receipt to prove what was generated — then verify line items in the product before filing.

• Does not file returns with the IRS or state agencies
• Does not replace professional tax advice for entity structure, elections, or nexus
• Does not guarantee completeness if imports or feeds are incomplete
• Does not cover every jurisdiction’s crypto or securities nuance at launch

Open verification · Close + Attest · Security & reliability · Guided sandbox · Pricing · Investment disclaimer