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02_Installation Setup.fm - Drake Support

1. Choose to have a custom paragraph printed on the bill Select a location and then write the paragraph in the supplied text box States To select options for state returns select the States tab and then select a state abbrevi ation from the drop list When the options are displayed select to activate or disable them as desired and click OK Available options depend on the chosen state For more on specific states see the FAQ screen for each state program E filing Options under the EF tab are described in Table 2 11 Some can be adjusted for an individual return from the EF screen in data entry Table 2 11 Options Setup EF Option Auto generate taxpayer s PIN Description Have the software assign a randomly generated PIN 1040 only Require Ready for EF indicator on EF screen Requires that the Ready for EF indicator on the EF screen be marked before a return can be selected for e filing Lock client data file after EF accep tance Locks the client s data file once it has been e filed Opening a locked file requires you to acknowledge a warning screen before you can edit the return You can also access a locked file at Tools gt File Maintenance gt Unlock Client Files Print 9325 when eligible for EF Prints Form 9325 Acknowledgment and General Information for Taxpayers Who File Returns Electronically for every eligible return 32 Tax Year 2012 Drake Software User s Manual
2. generated with the return For more on available options see Table 7 4 on page 209 For more on indi vidual bank selections see Chapter 7 Banking Tax Year 2012 Drake Software User s Manual Software Setup Editing Firm Information Shortcut Double click a firm s row to edit firm data Deleting a Firm Printing a List of Firms at Print ERO Setup Tax Year 2012 4 Click Save The program assigns a number for each firm entered in Firm Setup To view a report of the revenue you ve earned from the additional add on fees for e filing log in to Support DrakeSoftware com and go to My NOTES Account gt Bank Application Log in to the EOM with your EFIN and Drake password then from the blue sidebar menu click Reporting These fees are listed when the returns are funded not as the returns are transmitted To edit a firm s information 1 From the Drake Home window go to Setup gt Firm s 2 Select the firm to edit and click Edit Firm to activate the bottom half of the Firm Setup window 3 Edit the firm information See Adding a Firm on page 20 for information on individual fields 4 Click Save and then click Exit to close the Firm Setup window To delete a firm from Firm Setup 1 From the Drake Home window go to Setup gt Firm s 2 Select the firm to delete and click Delete 3 Click Yes and then click Exit to close the Firm Setup window To print a
3. Description Business referral Figure 2 11 Enter code and description in the Add Entry fields 5 Click Add 6 Repeat the previous two steps for additional drop list items When added items are displayed in the Entry List on the left side of the dialog box Figure 2 12 Entry List Edit Remove Move Up Move Down Sort Ascending Sort Desc B Business Referral WOMREF Word of mouth referral NEWSREF Newspaper ad RADIOREF Radio ad CARDREF Business Card handout ending ee ee Se N E a a i Figure 2 12 Entry list of Edit Entries dialog box 7 Click Save Changes to close the Edit Entries dialog box Click Exit to return to the Administrative Options tab The drop list is now available in data entry The Edit Entries dialog box also offers the following options e Changing the order of a listed item Use the Move Up Move Down Sort Ascending and Sort Descending buttons to change the order of items in the drop list See Figure 2 12 e Removing a listed item Select an item and click Remove See Figure 2 12 e Editing a listed item Double click an item The Selected Entry box see Figure 2 11 is activated with the item properties Make changes and click Save You can also create drop lists for the Adjustments and Payments field NOTE of the BILL screen When viewing a customized drop list in data entry click F1 to see the item descriptions 36 Tax Year 2012 Drake
4. Software Setup Table 2 11 Options Setup EF Option Description Suppress federal EF Prevents e filing of the federal return Print EF status page Generates the EF Status page for any return that is eligible for e file Alert preparer when bank product is not included Alert the preparer via an EF message that a return does not include a bank product To override see Overriding Bank Product Alert on page 238 Activate imperfect return election in data entry Activates Imperfect Return Election check box on EF screen in data entry Allow selection for EF from the Cal culation Results screen Allows preparer to send the currently active return directly from the Calcu lations Results window to the e filing queue The return is then transmit ted automatically the next time you e file returns Enable prompting before automatic transmission of Check Print Records Allows program to notify you before it transmits the Check Print Records E mail 9325 Notice to Taxpayer automatic from Drake Processing Center Form 9325 Acknowledgment and General Information for Taxpayers Who File Returns Electronically is automatically e mailed to taxpayer when return is accepted E mail address must be present on screen 1 Default ERO Choose a preparer number Paid Preparer or None to indicate the ERO name that should appear on return documents This choice can be overrid de
5. The left margin of a letter can be changed to suit your printing needs To change the left margin of the default letter 1 2 In the Client Communications Editor select Setup gt Letterhead and Margins Enter a number under the Left Margin Adjustment box Figure 2 18 on page 45 Tax Year 2012 Drake Software User s Manual Software Setup Naming a Template Press CTRL N to quickly access the Rename Letter dialog box Restoring a Template Tax Year 2012 Drake 2012 Letterhead d and Marg ins Setup Letterhead Logo Setup Use this screen to specify the presence and location of logo and firm information on letters and to adjust the left margin of all letters To choose a logo either type the path and file name or click Browse Letter and Bill Indicators Coordinates V Use Logo on Letters Left most Column for Logo a Use Firm Info on Letters Top most Row for Logo Bo Use Logo on Bill Left most Column for Firm Info j5 I Use Firm Info on Bill Top most Row for Firm Info a Bitmap Path and File Name Path and File Name for Bitmap Logo Browse DRAKE12 CF LOGO BMP Note A full path and file name are required to print a logo Leave blank for no logo Left Margin Adjustment Enter a value to increase the left margin for all letters Note Values are in inches For example Enter 2 to adj E margin by two inches Enter 1 to adjust by 1 10th of an inch If 0 is entered the program
6. When a return is generated Drake prints envelope coversheets if selected for mailing with copies of the return to the taxpayer and tax authorities Default settings for enve lope coversheets are set in Setup gt Options Optional Documents tab Use the PRNT screen to override coversheet options for a single return 53 Making Changes on the Fly Drake Software User s Manual Filing When a return is generated Drake prints federal and state filing instructions Default Instructions settings are established from Setup gt Options Optional Documents tab Use the PRNT screen to override the default and force or suppress the filing instructions Due FEIC due diligence information is entered on screens EIC1 EIC2 EIC3 and EIC4 Diligence The PRNT screen includes options to print EIC due diligence documents with a Documents selected return These options are set globally from the Administrative Options tab in Setup gt Options Dates on the A default due date for filing is printed on returns and all letters and filing instructions Return generated with a return Use the PRNT screen to override this default date These changes cannot be set globally from Setup Override the default date by entering an alternate due date in the Date to print on returns or Due date to print on letter and filing instructions fields in the Print Overrides section of the PRNT screen Return By default the program displays certain indicators such as Hurri
7. select it quickly te a i 5 Enter pricing information in the Per Item and Per Form fields e When a Per Item entry is not applicable for a form the field is unavailable e If Per Item pricing is allowed the price entered will apply to all instances of the selected form that are printed for a return To view all items for which per item pricing is allowed click the Per Item Charges tab see Figure 2 13 6 Click Update and then click Save Repeat these steps for each form or set pricing for only the most commonly used forms You can price other forms from within the individual returns that require them For more information see Overriding the Bill Amount on page 56 Fee Options The program includes options to add a custom fee and a financial product assistance fee Both fees are included in the Forms section of the bill e Custom fee The custom fee is charged on all client returns Use item 0387 in the Pricing Setup window to assign a fee name description and amount e Financial product assistance fee Use this option item 0212 in Pricing Setup to add a charge to all returns that include a bank product This fee is not included on the bill if any of the following are true Tax Year 2012 37 Software Setup Minimum amp Maximum Fees Use the scroll bar or arrow keys to find forms Drake Software User s Manual The firm state is Arkansas Maryland Maine or New York See Program Help link in
8. Macro Symbols Action Move cursor back one field If the lt symbol is inserted in front of selected data in a macro the pro gram moves the cursor back one field from the active field before inserting the data If inserted after the data the program inserts the data in the active field then moves the cursor back a field gt Move cursor forward one field If the gt symbol is inserted in front of the selected data in a macro the program jumps ahead one field from the active field before inserting the data If inserted after the selected data the program inserts the data first and then moves the cursor forward a field Tax Year 2012 39 Software Setup Drake Software User s Manual Table 2 13 Macro Symbols Symbol Action Escape If the symbol is inserted after the selected data in a macro the program inserts the selected data saves the data and exits the screen D Insert date If D is part of a macro the program enters the current date into the active field Launch heads down data entry mode If the symbol is inserted after the selected data in a macro the program enters the data then activates heads down data entry To have heads down closed from the macro add a second symbol See Heads Down Data Entry on page 75 Bypass the Existing Forms List when performing the task set by a macro Enter an asterisk only once in any macro and place it at the beginning
9. Opt large paper source Manual feed Select the tray to be used as the optional large paper source Select the tray to be used for manual feed Testing Your While there has been a huge shift towards e filing there are still times when returns Printer Tax Year 2012 must be paper filed In an effort to process those paper returns electronically gov ernment agencies scan these returns allowing them to more efficiently and accurately move the paper returns into the electronic processing system Drake has made changes to its print engine as a part of an ongoing effort to create nearly exact replicas of tax forms on the many different makes and models of printers that are used in tax offices today Some of these changes are necessitated by the emer gence of stricter requirements enforced by some government tax agencies for paper processing Drake has provided a way for you to print a test page in the preferred Printer Com mand Language PCL mode to see if your printer is compliant with these software changes To test your printer take the following steps 49 Software Setup 50 N Drake Software User s Manual From the Home window of Drake go to Setup gt Printing gt Printer Setup Click the F8 Edit Printer Settings tab to open the Printer Setup dialog box Select your printer from the Select printer drop list This activates the fields below On the right center of the Printer Setup dialog
10. lt Paragraph from LTR screen gt keyword The keyword appears in the letter template 6 Click Save When the return is generated the letter displays the custom paragraph as directed If a return has an EF message when calculated the return is considered ineligible for e file and the program generates a result letter for a paper filed return If the return is considered eligible for e file a letter for an e filed return is generated You can over ride these defaults for the federal and state tax returns and extension applications To override the defaults go to the LTR screen and select EF or Paper for the selected returns Figure 2 24 To indicate one or more state returns select state abbreviations from the drop lists provided In the Figure 2 24 example the letter will be worded as if both the federal and Arizona returns are going to be e filed even if the return is not eligible for e file Override Options Letter Paragraph Override Setup Options Override 1040 M EF W Paper Federal Extension EF ff Paper Die Pape v Customized Supplemental Letter FederalAmended EF ff Paper x 2 gos v Engagement Letter MV EF J Paper v D EF T Paper I Paper A per Paper gt Privacy Policy EF Jf Paper z M EF J Paper z D EF J Paper z D EF Paper Figure 2 24 Select FF to force a letter to be printed as if the return is eligible for e file 59 Making Changes on the Fly Drake Software User s Manual Print
11. 800 2PAYTAX or 888 PAY 1040 lt End Paragraph gt Figure 2 15 Conditional paragraph Many conditional paragraphs are nested within larger ones Different nesting levels are indicated by different colors In Figure 2 16 the Federal No Dir Debit Paper Paragraph from Figure 2 15 is nested inside the Federal Balance Due Paragraph The green and purple text show where each paragraph begins and ends lt Federal Balance Due Paragraph gt Your federal return reflects a balance due of lt Federal Balance Due gt lt Federal No Dir Debit Paper Paragraph gt Include your payment and Form 1040 V with your return For faster processing and to prevent errors make your check or money order payable to the U S Treasury and write your Social Security number and lt Current Tax Year gt Form 1040 on the check or money order If you want to review credit card and other payment options available call 800 2PAYTAX or 888 PAY 1040 lt End Paragraph gt lt End Paragraph gt Figure 2 16 Nested Conditional Paragraph In this example the Federal No Dir Debit Paper Paragraph is generated only if the Federal Balance Due Paragraph is generated and only if applicable for a return The Client Communications Editor accessed from Setup gt Letters is where you can read edit re write print and save the letters contained in the program You can also add your company letterhead and logo to the letters The right pane of the Editor d
12. Coupons 3 per sheet Enter the number of sheets per return or the coupon amount NOTE To override the default letter for an individual client see Overriding Letters Setup on page 58 Optional Options under the Optional Items on Return tab are described in Table 2 9 Items on Return Table 2 9 Options Setup Optional Items on Return Option Description Date on return The default is the current date To change this date enter the required date on the PRNT screen If desired select to print dates for taxpayer and spouse signatures excluding 1040 Print dates for taxpayer and spouse signatures excludes 1040 Taxpayer phone number Select this option to print the signature dates for taxpayer and spouse signa tures on the return excluding 1040 Select this option to print the taxpayer s phone number entered on screen 1 Third party designee Select the preparer number of the preparer designated as the third party des ignee to be printed on the main form of the return Rounding amounts Interest and Penalty Calculation Select Dollar or Penny rounding Dollar rounding is required for e filing Penny rounding prints penny amounts on all forms Calculate penalties and interest on returns filed after the due date based on interest rates entered For more information see Penalty and Interest Calcu lation on page 181 Tax Year 2012 31 Software Setup Drake Software User
13. Setup gt Options Administrative Options tab In Setup gt Options Administrative Options tab the option to charge all taxpayers the same fees is marked In Setup gt Pricing the Include on Bill box is not marked for this fee To set minimum and maximum fees to be charged for a return 1 From the Home window go to Setup gt Pricing and select a package from the Form box All forms for that package are displayed in the grid below 2 Scroll down to Forms 0255 and 0256 the minimum and maximum fee settings 3 Double click a row and enter the fee Repeat for the other form if desired 4 Click Update and then click Save NOTE If incorrect charges are generated on bills check the minimum and maximum fees to see if the settings are affecting the totals Macros Setup Using Macros Creating New Macros To view a list of macros in data entry press CTRL SHIFT M 38 NEW FOR Macros are a series of commands and functions that allow a combination of keys to accomplish tasks Also called shortcut keys some macros are already available in the program for example CTRL V opens View mode You can edit existing macros or create new ones to meet your office s needs You can also use macros for data that is used often by your office For example if many of your local clients use Small Town Bank you can arrange for the program to enter Small Town Bank every time you press a particular shortcut key combi
14. Software User s Manual Software Setup Pricing Setup Use Pricing Setup to enter prices and allow Drake to calculate charges and generate them on the client s bill Prices can be defined for each form and on some forms for each item You can also enter minimum and maximum charges for a completed return NOTE Bank product fees are established in Setup gt Firm s To set up pricing 1 From the Home window go to Setup gt Pricing 2 Select a package from the Form box of the Pricing Setup window All forms for that package are displayed in the grid below View items by category by clicking the tabs at the top of the grid Figure 2 13 cate mlm at y of aaa pager ae ge eee e oti iai eae Category O AHE Update All Forms Worksheets Statements Per Item Charges Miscellaneous 0001 Form 1040NR U S individual Nonresident Income Tax Return N A 0 00 4 x 0002 Form 1040 U S Individual Income Tax Return N A 0 00 2 x 0003 Form 10404 U S Individual Income Tax Return NA 0 00 2 x 0004 Form 1040E2 U S Individual Income Tax Return N A 0 00 1 x 2 x PA E EN E E A T N RET a Figure 2 13 Tabs allow you to view categories of documents that can be priced Use the scrollbar 3 Select a form in the grid and press ENTER or double click the form k Pe etd Se 4 Optional Edit the Form Description This description is printed on the client click a form to bill if Include on Bill is selected Do not edit the form name
15. alignment and copy cut and paste e To add a keyword or conditional paragraph to the letter place your cursor where you want the new item to go and then locate and double click a key word or paragraph from the pane on the left To delete a keyword or condi tional paragraph select it in the letter template and press DELETE Click Save The Client Communications Editor does not allow you to save any letter in which text within angle brackets in other words the names of keywords or conditional paragraphs has been changed Arrange to have your firm s information and logo generated on client bills and letters To set up your letterhead 1 2 3 5 In the Client Communications Editor go to Setup gt Letterhead and Margins Select options from the Letter Bill Indicators section Designate Coordinates In the right column number settings indicate the position of the firm information and logo Settings for the default graphic are e Left most column for logo 8 e Top most row for logo 3 e Left most column for firm info 25 e Top most row for firm Info 4 Enter the path to the graphic in the Path Filename for Bitmap Logo text box or use the Browse button The full path and filename are required To use the simple default graphic enter C Drake1l2 CF LOGO BMP C indicates the drive letter to which the Drake program is installed Change if necessary Leave blank for no logo Click OK
16. in the Password field under Login Information A password can be up to eight characters alphabetic and or numeric and is not case sensitive 4 Re enter the password in the Password Repeated field 5 Click Save and then click Exit If no PTIN has been entered you will be asked if you want to exit the NOTE window without entering a PTIN Click Yes or click No and enter a PTIN before saving and exiting A PTIN is required for e filing 19 Software Setup Firm Setup 20 Drake Software User s Manual Firm setup must be completed before preparing and e filing returns If data is inaccu rate or missing tax returns might be e filed with incorrect information NOTE To ensure that all information needed for e filing is entered for a firm firms with incomplete information are highlighted in red in the Setup gt Firm s grid Fields required for e filing are marked by red text With the click of a button you can now import the information from your firm s bank application into the Drake program See Banking Informa tion below Adding a_ To add a firm in Firm Setup Firm Add 1 From the Drake Home window go to Setup gt Firm s 2 Click Add to activate the bottom half of the Firm Setup window 3 Enter your firm s general and banking information Fields needed for e filing are indicated by red text NOTE General Information Enter contact and identification information includ i
17. nation The Setup Macros screen has changed slightly making it easier to 7017 enter longer macros and a new Record feature allows you to create new macros more quickly To insert macro data place the cursor in the field and press the applicable shortcut key macro combination To view available macros press CTRL SHIFT M from within a field to open the Data Entry Macros window To insert macro data from the list select a macro and click Execute or double click the row The Data Entry Macros window is closed automatically To set up your own macros in Drake 1 From the Drake Home window go to Setup gt Macros The Setup Macros dialog box shows the shortcut keys Hot Key column and their associated tasks Data column 2 Double click a line to open the Edit Macro window and enter a new macro or edit an existing macro Tax Year 2012 Drake Software User s Manual Software Setup Recording Macros Symbol 4 In the Edit Macro pane construct a simple formula or words and operators that will enter the data you choose Symbols for non character shortcuts are listed in Table 2 13 Click Save For instance if you wanted to create and use an address macro for 1234 Peachtree Street Atlanta GA 30331 Fulton County using keys ATL L for your macro 1 2 3 4 5 6 From the Drake Home window go to Setup gt Macros In the Setup Macros window double click an empty Data line line In the Edit Mac
18. not compatible with macros that use or are initiated in heads down mode Prevents a macro from clearing a flagged field PAGEDOWN Move to the next screen in a list For instance in a return with several W2s screens Dependent screens or 4562 detail screens press the macro to move from one screen to the next PAGEUP Move to the previous screen in a list For instance in a return with several W2s screens Dependent screens or 4562 detail screens press the macro to move from one screen to the next NEXTTAB Move from one linked screen to the next linked screen For instance for clients who receive a K 1 from a partnership press the macro and go from the 1065 K1 13 20 screen to the Basis Worksheet screen PREVTAB Move from a linked screen to the previous one For instance for clients who receive a K 1 from a part nership press the macro and go from the Basis Worksheet screen to the 1065 K1 1 12 screen Introduction to Letters in Drake The letters program generates various types of client letters from engagement letters to the return s cover letter In some cases letter content is automatically based on data from the tax return For example if a return with a federal balance due has been e 40 Tax Year 2012 Drake Software User s Manual Software Setup Parts of a Letter Tax Year 2012 filed and the client has opted to mail a check to the IRS the accompanying result letter will
19. of the macro When you open a screen that has mul tiple records an Existing Forms List is displayed and you have the choice of selecting an existing record or creating a new one To bypass the New Record option and open the first record listed enter the symbol in front of the macro For example c opens the first Schedule C record To open the second record enter a 2 inside brackets 2 thus the macro c 2 opens the second C screen C 3 opens the third etc New Perform the assigned task on a new record For example C New opens anew C screen The aster isk bypasses the Existing Forms list It must be present for the New function to work properly Home Return to first field on a screen If Home is inserted into a macro the cursor moves to the first field on the screen End Move to last field on a screen If End is inserted into a macro the cursor moves to the last field on the screen FF Cursor jumps ahead a prescribed number of fields For instance FF 5 jumps the cursor ahead five fields This macro is not compatible with macros that use or are initiated in heads down mode FB Cursor jumps back a prescribed number of fields For instance FB 5 would jump the cursor back five fields FJ Cursor jumps to the prescribed field number For instance F3 25 would jump the cursor to field 25 Obtain field numbers by viewing the screen in heads down mode This macro is
20. per set below Valid Copy amounts are 0 9 Schedule C EF Signature Est Ext Client Preparer Federal K 1 r eke e e Figure 2 20 Example Three copies of Schedule C for client 6 Click Update 7 Click Save and then click OK Repeat this procedure for other forms as needed Changing You can make Sets changes on the fly in other words without going to Printer Setup Print Sets On but this will modify settings globally not just for the active return If you change the Fly your Sets settings on the fly you change the settings for all returns To change or add print settings on the fly complete the following steps while in Enhanced View mode for a return 1 Select a form from the directory tree 2 Select Setup gt Form Properties from the toolbar 3 Inthe Number of Copies section edit settings and click Save Pricing can also be changed using this option see Pricing for a Single NOTES Return on page 57 If using Basic View access this feature by right clicking a form in Basic View and selecting Properties Setting stl Use this option to view or change the order in which forms are printed raer j 1 From the Drake Home window go to Setup gt Printing gt Printer Setup 2 Click Set Form Order at the bottom of the Printer Setup dialog box to open the Sort Form Order window 3 Select a package series and choose a set type Forms are listed with their order number in parentheses to th
21. preparer is not set up in Preparer Setup If you make an entry in the Federal Preparer Information section of the PREP screen the program requires that full override information for both the preparer and the firm also be entered in this section The PREP screen also includes an option not to print the preparer s information on the letter bill or summary You can now enter state preparer registration information for California NOTE Maryland Minnesota New York Oregon and Virginia on the PREP screen You can also enter a firm s foreign address information in both the federal and state preparer information sections Overriding the Bill Amount 56 Overriding the Total Adjusting Individual Amounts Standard rates must be established in Pricing Setup but you can change the billing amount for a return either by overriding the total or by adjusting individual amounts To override the total amount on a client s bill go to screen 1 and enter the desired amount in the Fee Override field located in the Return Options box Use the BILL screen to adjust individual amounts on a client s bill The following items are added to or subtracted from the bill using the BILL screen e Write in Adjustments such as for coupons and other discounts and adjust amounts charged for these adjustments e Balance due from prior years e Scenario Planner fees e Percentage increases and discounts e Sales tax percentage e Prior Paym
22. 4 Click OK The server only system is now in place Once this process has been completed at each workstation that will be using Drake you will be able to access the Drake program from any of these workstations By default all workstation use the configurations for letters pricing firms preparers etc as set up on the server To use configurations set up elsewhere for instance on each individual workstation 1 From the Home window in Drake go to Setup gt Data Locations 2 In the Network Setup section of the Data Locations dialog box Figure 2 3 on page 16 choose the drive where you ve made the configuration settings from the Share settings letters pricing drop list 3 Click OK By default all prior year files are stored on the server To access prior year files stored elsewhere 1 From the Home window in Drake go to Setup gt Data Locations 2 In the Location of client folders section of the Data Locations dialog box Figure 2 3 on page 16 enter the location where you wish to store and access prior year files in the Location for 2011 client files drop list 3 Click OK Some network setups such as peer to peer networks don t work off an actual server Each station runs Drake independently but one computer a designated server is used for transmitting returns For such setups follow the instructions in Installing from CD on page 12 to install Drake onto each workstation O
23. CAF number assigned by the IRS Jurisdiction Enter the jurisdiction in which the preparer is authorized to practice before the IRS If the preparer is an IRS Enrolled Agent EA enter the EA number here Enter W 7 Acceptance Agent information for the preparer if applicable You are now ready to set up preparer security If you click Save at this point you will be reminded that security rights need to be set before the preparer can access any fea tures in the program If you select to close Preparer Setup now be aware that you ll have to return at some point to set the preparer s security rights To proceed go to Step 4 in the following section Setting Up Preparer Security 23 Software Setup Drake Software User s Manual Setting Up This feature establishes security settings for an individual preparer To assign the same Preparer security level to many preparers the Group Security feature may be a better option Security See Setting Up Group Security on page 25 NOTE Only administrative users can set security rights Settings must be established before a preparer can begin working in the software To customize security settings for a preparer a 1 From the Drake Home window go to Setup gt Preparer s z i Select a preparer and click Edit Preparer 2 3 Select Security gt Custom Security 4 In the Preparer Security Setup window select a menu and then select the items to which the prepa
24. Documents Option Description Folder coversheet This option generates a folder cover sheet containing the taxpayers names and the name address and phone number of the preparer s firm Prior year s comparison form Select this option to produce a comparison sheet containing data from the cur rent and prior year returns Return summary Select this option to produce a return summary with every return prepared Bill summary Select this option to produce a summary of the taxpayer s bill with each return Federal filing instructions Displays detailed federal filing information including the date to file form to be filed address to file and payment amount The instructions are listed as FILEINST PG in View mode Activated by default Clear the check box to dis able or use the PRNT screen to activate or disable on a single return State filing instructions Displays detailed state filing information including the date to file form to be filed address to file and payment amount The instructions are listed as STINST PG ST refers to the state abbreviation for example OHINST PG for Ohio instructions Activated by default Clear the check box to disable or use the PRNT screen to activate or disable on a single return Labels Select this option to print a sheet of mail to addresses on Avery 5160 labels Envelope Sheet address drop lists Choose the size of the e
25. Drake Software User s Manual Running Drake on a Network Welcome to the Drake Software Setup Assistant Use the Required for E filing Setup section to enter setup information for firms preparers and e filing Each setup screen is designed to allow for minimal data entry in order to start using the software The checkboxes will let you know if you if you have the minimum required fields for a successful e filing To further customize the software to your needs use the Optional Setup section V Do not show Setup Assistant at program startup Required for E filing Setup Completed Mi Firms You have completed the firm information required for e filing You can add more firms by going the Setup gt Firms x ERO ERO is missing some or all of the fields needed for e filing Go to ISetuo gt EROI to complete the needed information You have completed the preparers information required for 2 P e filing for at least one of your preparers However one or reparers more preparers have incomplete information Go to Setup gt Preparers to complete this information Sru okionn abe Cotatie aasan ppp aane dn apaan Figure 2 2 A green check mark indicates a completed setup item a red X indicates an incomplete setup item and a question mark indicates a partially complete setup item You are not required to use the Setup Assistant To keep it from opening at program startup select Do not show Setup Assistant at progra
26. ET City State Zip Code FRANKLIN NC 287341001 Federal EIN 590000000 Telephone Number 828 524 8888 Connection Settings Choose the appropriate settings below If necessary consult with your technician or contact Drake Support for assistance 1 Always use my existing Internet connection DSL Cable LAN Dial up 2 Dial whenever an Internet connection is not present 3 C Not Recommended Always launch a new dial up connection When dialing use this connection X Franchise Network Information Admin only Master EFIN Fee Name Disclosure or Use of Tax Information by Preparers of Returns Need consent to disclose tax return information to this franchisor network Help Install Dialer OK Cancel Figure 2 4 Setup gt ERO Click the Use Firm 1 Info button Figure 2 4 on page 22 to import the NEW FOR information for the first firm listed in Setup gt Firm s directly into the 7017 General Information section of the Electronic Filing Setup window 3 6 Preparer Setup In the event you must edit your serial number mark the Serial Number check box and enter the changes Under Connection Settings make a new choice if you wish to change from the default setting Always use my existing Internet connection which works for most computers Contact Drake Support if you have trouble connecting to Drake If your firm is a franchise or network complete the Franchise Netw
27. Letter case for data entry Choose between all uppercase letters and mixed case Override field indicator Format override fields in data entry see Override amp Adjustment Fields on page 72 Adjustment field indicator Format adjustment fields in data entry see Override amp Adjustment Fields on page 72 Display warning for missing required fields Choose to receive a warning whenever a required field is empty once per data entry session not at all Tax Year 2012 Drake Software User s Manual Software Setup Calc amp Options under the Calculation amp View Print tab are described in Table 2 6 View Print Options Table 2 6 Options Setup Calculation amp View Print Option Description Autocalculate tax return when exiting data entry Returns are automatically calculated every time you exit the return Display client fee on Calculation screen Allows the fees charged for return preparation to appear on the Cal culation Results window Print only one overflow statement per page Each overflow statement is printed on a separate piece of paper Go directly to form when accessing View or data entry mode Go from a data entry screen to the corresponding form in View mode when you go to View mode When the Data Entry button is clicked in View mode the program returns to the data entry screen Audible notification of calculation error messages When calculat
28. Locking Screens users An administrative user can lock selected screens making them inaccessible to other 1 Go to Setup gt Options Administrative Options 2 Select Use Customized data entry selection menu 3 Click Customize After loading a selected menu click a screen s check box to lock the screen or to make it visible or hidden Default is visible Examples are shown in Figure 2 8 and described below the figure 34 Tax Year 2012 Drake Software User s Manual Software Setup Customized Drop Lists Tax Year 2012 V ADMN Return Tracking LOCKAR IV BILL ClientAdjustments Visible M CHK Return Checking Information V COMP Tax Year Comparison Hidden J ELEC Election Options n EPAY Integrated File and Pay M ESUM e File Summary M LOSS Worksheet for NOL Carryovers lv LTR Letter Customization een Align mthangug Quer O lt cnm Figure 2 8 Locked Visible and Hidden screens e Locked Menu items with a shaded check mark are not visible or accessible e Visible Menu items with a black check mark are both visible and accessible e Hidden Menu items with no check mark are not visible but can be accessed using the selector field 4 Click Save to save any changes or Cancel to close the menu with no changes saved Selections made here do not apply for users with administrative rights Your firm can create drop lists for the Miscellaneous Codes on screen 1 and the Adjustme
29. Privacy Policy K 1 Cover Letter K 1 Amended Letter Grantor Trust Statement Generic privacy policy for clients Cover letter for a shareholder partner or fiduciary receiving a Schedule K 1 S corp partnership and fiduciary packages only Cover letter for a shareholder partner or fiduciary receiving a Schedule K 1 that has been amended S corp partnership and fiduciary packages only Cover letter for grantor trust statement fiduciary package only Letters Setup Use the Client Communications Editor Setup gt Letters to edit letter templates set up the letterhead for letters and client bills and preview letters NOTE Tax Year 2012 Use the Letter Outline tab to find individual letter paragraphs quickly 43 Software Setup Editing a Letter Template The Client Communications Editor opens to the last letter template viewed CTRL X deletes a selected item Setting Up Letterhead You can also use the Client Commu nications Editor to set up letterhead for bills Changing Letter Margins Drake Software User s Manual To edit a letter 1 2 NOTE In the Client Communications Editor click Open and select a package and letter to edit The pane on the right displays the selected template e To edit the letter contents add edit or delete text as you would in a program like Microsoft Word From the toolbar specify font properties typeface bold italic underlined and
30. Setup Field Select printer Description Select the printer For printers other than Drake PDF Printer the fields listed below are activated If you select Drake PDF Printer you ll be given the option to launch Adobe after printing to the Drake PDF Printer Printer type Select the printer type from the drop list DPI override Change the dots per inch DPI setting Adjust margin Select this option if printed forms are running off the lower edge of the paper Check adjust ment vertical Use this field if text is being printed too high or low on checks Enter whole numbers to adjust the printed text 1 4 inch at a time Enter 1 to move the type 1 4 inch 2 to move 1 2 inch etc Positive numbers move the placement down negative numbers move the placement up Print Method PCL Printer Control Language is supported by most HP laser jet printers If your printer supports PCL the remaining fields on the screen will be filled automatically The Alternate Print Method GDI will produce a good print quality but may be slower under some conditions Test Printer Click the Test Printer button to see if your printer is HP PCL 5e compliant See Testing Your Printer following Main paper Select the tray that is to be the main paper source for the source selected printer Alternate Select the paper source to be used when the main paper paper source source is not available
31. appear on the return Because both the firm and ERO information is determined by the return s pre parer a selection in the Preparer drop list will cause both the firm and ERO information to be overridden with the corresponding information associated with the selected preparer Tax Year 2012 55 Making Changes on the Fly Drake Software User s Manual Overriding Other Preparer Information e If for Preparer or Firm you select NONE Self Prepared Return No Paid Preparer nothing will be printed on the applicable lines on the return For ERO the program uses the information entered on the EF tab in Setup gt Options e Data entered on the PREP Preparer Information screen overrides the default data and the corresponding Return Options selections on screen 1 ERO informa tion is not affected by PREP screen entries For more on the PREP screen see Overriding Other Preparer Information following e The Data Entry field shown in Figure 2 21 on page 55 is for tracking pur poses only e A firm or preparer must be entered in Setup gt Firm s or Setup gt Preparer s in order to show up as an option in the override drop lists on screen 1 The PREP screen in data entry allows you to override the following data for a return e Third party designee See Third Party Designee on page 162 e Federal preparer information if the preparer is not set up in Preparer Setup e State preparer information if the
32. are com Training Tools gt Manuals Data Locations Setup Data location settings formerly Directories Paths settings which manage the loca tions for data access and storage is now configured when you install the program To change your settings ADMIN only select Setup gt Data Locations from the Home window For more information see Single Workstations and Network Options on page 16 Directory and path settings should not be changed during tax sea son Changing a drive letter during tax season can cause problems in CAUTION file storage and e file processing For details on setting network con figurations see Single Workstations and Network Options on page 16 For assistance contact your office IT professional or Drake Support Options Setup Options Setup is The tax software is shipped with the most common preferences set as the defaults Use eet ae Options Setup accessible by clicking Setup gt Options from the Home window to filing tax returns view or change the defaults for the various options available Options are categorized into tabs as shown in Figure 2 7 Only administrative users have the Administrative Options tab Broke 2012 Setup Options a Data Entry Customize data entry functionality by indicating your preferences below Billing States EF Administrative Options Data Entry Calculation amp View Print Form amp Schedule Options Optional Docum
33. box click Help Me Choose to open the Printer Test Assistant dialog box From Step 2 of the Printer Test Assistant dialog box click Send Printer Test Page to the Selected Printer item 1 in Figure 2 19 Drake Software Printer Test Assistant Se Drake Printer Test Assistant The Preferred Print Method PCL requires the pnnter support the HP PCL 5e printer specification AND the Arial font This is due to requirements mandated by state Departments of Revenue Test Printers Step 1 Select a printer z iharc ppDev1 Step 2 Send a test page to the printer 4 Send Printer Test Page to the Selected Printer Step 3 Look at the test page and compare the printer output with the Arial font Sample Arial Font 2 Form 1040 U S Individual Income Tax Return Step 4 Does the printer output match the Arial font on the printed Test Page Yes it matches No it does NOT match Nothing printed Figure 2 19 Click Send Printer Test Page item 1 to test a printer for PCL compliance 6 7 8 9 Compare the text of the printed page to the Sample Arial Font of the dialog box item 2 of Figure 2 19 Click the appropriate button item 3 of Figure 2 19 e Yes it matches exactly Your printer is PCL 5e compliant and meets Arial font requirements The software selects the PCL method automatically e No it does not match Your printer doesn t appear to support Arial font and wi
34. cane Katrina on Indicators applicable returns Use the PRNT screen to force certain indicators to be displayed If a return qualifies for special treatment due to a disaster the N DTE required literal should be entered in the Disaster designation field An entry here will be printed at the top of the main federal form and will be included in the transmission file for e filed returns Billing The following global setup options are set from Setup gt Options Billing tab and can Format be changed on the fly by using the BILL screen in data entry Table 2 18 Billing Options That Can Be Changed on the Fly Option Choices Billing Statement Format Total only Forms and total Forms prices and total Bill by time Charge per form Custom Paragraph None Top of bill Bottom of bill For more on the BILL screen see Overriding the Bill Amount on page 56 NOTE Write the custom paragraph for the bill in the Custom Paragraph field at Setup gt Options Billing tab 54 Tax Year 2012 Drake Software User s Manual Making Changes on the Fly Penalty amp The following global setup options are for penalty and interest calculations on late Interest filed returns These are set from Setup gt Options Optional Items on Return tab Calculations and can be changed from within a return from the LATE screen on the Taxes tab Table 2 19 Penalty amp Interest Options That Can Be Changed on the Fly Global Setting Available Overr
35. ck the group row near the top of the Group Security dialog box Group ID Description Admin Group can access everything including special Admin only sections FRONT OFFICE Front Office used for non preparers FULL Full access to everything except special Admin only sections Security Group General Information Group ID Main Office Group Description Data entry operators who work inthe main office ssts lt CST Security Settings Assign Preparers File EF Tools Reports LastYearData Setup Help Custom Preparer Security V Open Retum Click the menu items to apply M Calc security A checkmark indicates B Print access is allowed Remove the V View checkmark to disallow access Forms Based Data Entry J Quick Estimator ee ee ee ee eee seman a a OT ee aa Figure 2 6 Security Group General Information section of Group Security dialog box 4 Under Security Settings click to mark the boxes representing the features to which the group should have access Accessible features cannot be edited for the Full or Admin groups Click Check All to mark all boxes shown in all menu cat egories 25 Software Setup Group Security Reports Sana Print Other Features Schedule 26 Drake Software User s Manual 5 Under the Assign Preparers tab select the preparers to be assigned to the group To select a preparer double click a name or click the name and click Select Selected preparers are
36. default letter for a returns go to the Optional Doc NOTE uments tab in Setup gt Options and select a template from the applicable package in the Result Letter section of the dialog box Tax Year 2012 Drake Software User s Manual Making Changes on the Fly Customized Greeting Adding a Custom Paragraph E filing or Paper filing Tax Year 2012 The default greeting for all letters is set in Letters Setup To override the greeting for a return go to the LTR screen and enter a new greeting in the Personalized letter greeting text box To begin the greeting for the letter with one return with Dear enter the greeting along with the name in the Personalized letter greeting NOTE field To have all letters for a package type begin with Dear or another greeting of your choice make the change in the actual tem plate in Setup gt Letters To add a custom paragraph to a letter write the paragraph in the Custom Paragraph field of the LTR screen By default the paragraph is printed at the bottom of the letter To have a custom paragraph appear somewhere else within the letter 1 From the Drake Home window go to Setup gt Letters 2 Click Open and select the package and letter to be generated for the client 3 Place the cursor on the line where you want the custom paragraph to appear 4 Click the plus sign next to Miscellaneous in the tree directory left column of window 5 Double click the
37. dialog box the box that is displayed when you click Print in Drake You can opt to print a custom watermark that you specify see Watermark Text in Table 2 15 on page 48 or to print Client Set or Preparer Set as a watermark Editing To edit settings for the printer used for printing tax returns Printer Settings 1 2 3 Tax Year 2012 From the Drake Home window go to Setup gt Printing gt Printer Setup Enter setup changes as needed Details on each tab are provided in Table 2 15 on page 48 Click Save 47 Software Setup Drake Software User s Manual Table 2 15 Printing Setup Tab Field Description F5 General Setup Tray Default is Main Paper Source Change the default if you have displays the current a multiple tray printer and will not be printing from the main tray default printer for Tax Forms Reports Labels Copies Number of copies to print not available for labels or checks n i r sorie deraui Duplex Directs printer to print duplex Only forms that are approved for Orte SONENIEaC SOUTCe duplex will be printed as duplex tray which allows you to print letters from a tray other Staple If the printer supports stapling after each print job select this than the one used for tax option to turn stapling on returns Show dialog Causes the Print dialog box to be opened before each print job F6 Sets Setup Tray Default is Mai
38. dule Options NOTES Inthe 1120S 1065 and 1041 packages if the option to print K 1 letters Forcing Items to Be Generated is selected at Setup gt Options you can go to the PRNT screen to sup press the printing of K 1 letters Table 2 17 lists PRNT screen items that can be forced even if the program calcula tions and established defaults would otherwise not generate them Table 2 17 Items That Can Be Forced from the PRNT Screen Item Description Schedule A Schedule A Itemized Deductions Schedule B Schedule B Interest and Dividend Income Form 4562 Form 4562 Depreciation and Amortization Form 6198 Form 6198 At Risk Limitations Form 6251 Form 6251 Alternative Minimum Tax for Individuals Form 8582 Form 8582 Passive Activity Loss Limitations Summary Individual Diagnostic Summary appears as SUMMARY under Mis cellaneous tab in View mode Compare Tax return comparison compares current year return with returns from the two prior years and appears as COMPARE under Miscella neous tab in View mode See Comparing Data on page 186 for more on creating a tax return comparison in Drake WK_SSB Social Security Benefits Worksheet provided by IRS for Forms 1040 and 1040A allows taxpayer to see if any benefits are taxable Next Year Worksheet showing the depreciation to be carried forward to 2013 Depreciation List Overriding Other Setup Options Envelope Coversheets Tax Year 2012
39. e To customize program colors 1 2 From the Drake Home window go to Setup gt Colors Under Program Colors choose one of the following options e Use Windows System Colors Program screens inherit the color scheme used by the operating system e Use Custom Created Colors The Program text color and Program background color boxes to the right become available Click a box to view the Windows color palette and choose a color Tax Year 2012 Drake Software User s Manual Software Setup 3 Click OK Data Entry To change the color of a specific area in data entry Colors a el a Printing Setup From the Drake Home window go to Setup gt Colors Click a color box in the Data Entry Colors box to open a Windows color palette Select a color and click OK Once all color selections are made click OK To restore the original color settings in Setup gt Colors click Restore and then click OK Use the Printer Setup to Establish the printer to be used with Drake Install a Print to PDF option that allows you to create PDF files See if your printer is HP PCL 5e compliant Your Windows default printer is designated as the Drake default printer NOTE when Drake is installed You do not have to add or set up a printer in TIP Drake if the printer is already set up in Windows Printer settings are carried forward automatically each year Watermarks can be added on the fly via the Print Selection
40. e is running from this location _v Only dives with Drake installed are sted Help Ok Cancel Figure 2 3 Network information is entered at Setup gt Data Locations Networks Install Drake to your network s server or to all workstations of a peer to peer net work Table 2 2 shows a comparison of the two network options Table 2 2 Comparison of Network Option All Workstations Peer to Peer Setups Server Only Preferred Setup For firms with a robust network setup For firms without resources to use a single server 16 Tax Year 2012 Drake Software User s Manual Single Workstations and Network Options Server Networks Other Network Configura tions Tax Year 2012 Table 2 2 Comparison of Network Option Server Only All Workstations Preferred Setup Peer to Peer Setups Simplified setup and updates Updates must be installed to each computer No need to stagger DCN counter Could be necessary to stagger DCN counter Once your network has been mapped and Drake is installed on a server complete the following steps at each workstation 1 Click Start gt Run Windows 7 users Click the Office button The Windows Start and Office buttons are located at the lower left corner of your screen 2 Type F DRAKE1 2 NWCLIENT NWCLIENT EXE substituting your server drive letter for F 3 Click OK Windows 7 users Press ENTER
41. e left Normal Default is the established IRS order Tax Year 2012 51 Making Changes on the Fly Drake Software User s Manual 4 To change the sequence in which the forms are printed click and drag form names until the forms are listed in the desired order 5 Click Save NOTE To back up the print order and restore it to another machine choose to back up the setup files from Tools gt File Maintenance gt Backup Document For details on how to set up and use the Document Manager see Chapter 13 Suite Manager Products Setup Making Changes on the Fly When you make changes on the fly you override program calculations and defaults set by either the program or by the preparer in Setup for the open return The rest of this chapter focuses on actions you can take while in data entry to override these global settings in an individual 1040 return Comparable options for other packages such as the business packages are provided in the manual supplements for those packages available at http Support DrakeSoftware com Suppressing Forcing Documents The PRNT screen allows you to indicate which forms should and should not be gener ated for a return regardless of program calculations and established defaults Suppressing Table 2 16 lists items that can be suppressed using the PRNT screen Items from Being Table 2 16 Items That Can Be Suppressed from the PRNT Screen Generated Item Description 1040EZ Pr
42. ents Tax Year 2012 Drake Software User s Manual Making Changes on the Fly NOTE To create user defined drop lists for the write in Adjustments and Pay ments screens see Customized Drop Lists on page 35 You can also indicate the following adjustments from the BILL screen e To exclude a charge for the Filing Status Optimization Report See About the MFJ MES Report on page 74 e To adjust the bill as needed for a self prepared or firm prepared e filed return The BILL screen also allows you to override the date printed on the bill and add a short note separate from the custom paragraph to the bottom of the bill Pricing fora To override Pricing Setup and establish prices for a single return Single Return 1 Indata entry click View to access View mode for the return 2 Right click a form in the left column and select Setup gt Form Properties The Properties dialog box is displayed Figure 2 22 TE 1040 Properties C DRAKE12 PR FED PER Sa 1040 Properties Update the 1040 description pricing and number of copies on a Per Form basis If the Form Information or Pricing is changed the return must be recalculated in order to see the changes Individual Income Tax Retum 1040 Form Information Number of Copies Form 1040 EF Signature 0 Form Description U S Individual Income Tax Return Est Ext 0 Federal Record 2 Client 1 Preparer 1 Federal 1 State 0 Pr
43. ents Optional Items on Return Select to Turn On Language Options 1040 package only Maximize data entry screens where possible for easier viewing Menus and data entry screens 26 dakadi i adh Apm Ne S YN Se oS Figure 2 7 Tabs in Options Setup Tax Year 2012 27 Software Setup Drake Software User s Manual Table 2 5 through Table 2 12 describe the options available on each tab in Options Setup Data Entry Options under the Data Entry tab are described in Table 2 5 Options Table 2 5 Options Setup Data Entry Option Description Maximize data entry screens where possible for easier viewing Increase the size of the Drake screen to fill your monitor Effective at all monitor resolutions Size data entry screens to show most fields without scrolling Decrease the size of large Drake screens so they fit on your monitor Effective only when monitor resolution is set to 1024x768 or smaller Disable sizing of data entry screens Keep preparer from resizing screens Effective usually for monitor resolu tion set to 800 x 600 or smaller Tab to ZIP code field skip city state and use ZIP code database Press the TAB key while entering an address in data entry to bypass the City and State fields and go directly to the ZIP field City and State fields are completed automatically based on the ZIP code entered Show notes reminders to preparer when opening a return Show all notes and reminde
44. events Form 1040EZ from being prepared program prepares either Form 1040 or 1040A instead 1040A and EZ Prevents Forms 1040A and 1040EZ from being prepared program pre pares Form 1040 instead State short Forces state return to be printed on the state long form form 8801 Suppresses printing of Form 8801 Credit for Prior Year Minimum Tax Individuals Estates and Trusts if the form is not required This form is generated by default on certain returns that have a credit carryforward WK_PAL Prevents Passive Activity Deduction Worksheet from being prepared This worksheet shows how much if any the taxpayer is taking in passive activ ity loss deductions this year and how much is being carried over WK_6251B Suppresses exemption worksheet for Form 6251 Alternative Minimum Tax WK179LMT Prevents section 179 Business Income Limit Worksheet from being pre pared This worksheet shows the amount if any of section 179 deductions taken this year and how much is being carried over 52 Tax Year 2012 Drake Software User s Manual Making Changes on the Fly Table 2 16 Items That Can Be Suppressed from the PRNT Screen Description Prevents proforma organizer for next year from being generated See Organizers and Proformas on page 80 Proforma organizer The option to print or suppress the 1040A and 1040EZ for all returns if applicable is set at Setup gt Options Form amp Sche
45. ext within angle brackets A keyword is a description of the type of text to be generated and added to the letter For example the keyword Current Date is at the top of each letter When a letter is generated the Current Date key word is replaced with the current date For more on keywords see Appendix C Text in black text is displayed exactly as it will be printed in the output of the letter Conditional paragraphs like keywords contain angle brackets Each paragraph actually consists of a starting tag the conditional text and an lt End Paragraph gt tag Note that both the starting and ending tags end with the word Paragraph The enclosed conditional text is printed only if a particular situation applies in that let ter For example the conditional paragraph in Figure 2 15 on page 42 is generated only if the taxpayer who has a balance due is paper filing and has selected not to pay by direct debit 41 Software Setup Paragraph Nesting Client Communica tions Editor 42 Drake Software User s Manual Text is generated only if this condition applies Include your payment and Form 1040 V with your return For faster processing and to prevent errors make your check or money order payable to the U S Treasury and write your Social Security number and lt Current Tax Year gt Form 1040 on the check or money order If you want to review credit card and other payment options available call
46. icing Apply to this retum Apply to all returns Form Price poo ltem Price 0 00 Not available Include on the Bill Figure 2 22 Pricing on the fly section of the Properties dialog box 3 Edit the description of the form if desired and edit the price listed per form or per item 4 Choose to Apply to this return or Apply to all returns Applying to all returns changes the pricing file globally in other words for all returns 5 Change number of copies if desired and then click Save You must calculate the return before you can view your changes on the bill Tax Year 2012 57 Making Changes on the Fly Drake Software User s Manual Overriding Letters Setup Default Result Letter 58 Letters options and defaults can be set from both Setup gt Options Optional Docu ments tab and Setup gt Letters Use the LTR screen accessible from the Other Forms tab to override global options on a per return basis The LTR screen allows you to make the following changes to the letters in a return e Have a result letter other than the default printed with the return e Enter a personalized letter greeting e Add a custom paragraph In addition it provides the following options e Force print a letter for a paper filed return or extension application even if the return application is eligible for e file e Force print a letter for an e filed return or extension application even if the retu
47. ides Calculation of penalty If the global option is selected it can be suppressed for a single and interest on all returns return If the global option is not selected it can be forced for a single return Interest rates Penalty and interest amounts can be entered manually for a sin gle return to override program calculations based on updated or manually entered interest rates in Setup gt Options For more on the setting up the global option in Options Setup and on using the LATE screen see Features for Late Filed Returns on page 181 Listing a Different Firm Preparer or ERO on a Return By default the program prints the information shown in Table 2 20 on the return Table 2 20 Firm Preparer and ERO Data That Can Be Changed on the Fly Information Description Firm Firm associated with Preparer 1 in Setup gt Preparer s Preparer Preparer 1 as entered in Setup gt Preparer s ERO ERO selected in Setup gt Options EF tab default is Paid Pre parer To override any of these defaults for a return go to screen 1 of the return and select a firm preparer number or name or ERO under Return Options Figure 2 21 Return Options TS Mme m Preparer ad Overpayy Data entry Invoiceg ROR LZ Fee ovf Figure 2 21 Setup override fields on screen 1 Be aware of the following information when determining what information is to
48. ing From Setup gt Options Optional Documents tab you can select to have the custom Additional ized supplemental letter engagement letter and privacy policy letter printed with all Letters returns To override the established defaults for a single return go to the return s LTR screen and select Yes or No for the desired letter types In Figure 2 24 on page 59 the user has selected not to have the engagement letter printed for the client Inthe 1120S 1065 and 1041 packages you can print K 1 letters for a NOTE return by entering the signing information on the LTR screen This is necessary only if the global option to print K 1 letters is not selected in Options Setup Overriding EF Setup The EF screen in data entry allows you to suppress federal and state e filing on a per return basis The program default in Setup gt Options EF tab is that all eligible forms will be e filed For more information on the EF screen see EF Override Options in Data Entry on page 236 60 Tax Year 2012
49. ing a return the program produces a beep to indicate an error message Layout for depreciation schedule Select Portrait to produce the depreciation schedule vertically using 8 5 x 11 paper select Landscape to produce it horizontally Pause option for calculation Choose the circumstances under which the Calculation Results win dow appears allowing a review of calculation results before proceed ing to View mode Number of days to store print files Select to store print files from 1 to 9 days or to have them removed once the return is selected for e filing If a return is needed after the print file is removed recalculate the return to re create the print file Print sort options for Interest Dividends Choose how items entered on the INT and DIV screens are sorted when printed on Schedule B alphabetically numerically or not at all Form amp Options under the Form amp Schedule Options tab are described in Table 2 7 Schedule Table 2 7 Options Setup Form amp Schedule Option Description Print Schedule A only when required Produce Schedule A only when taxpayer qualifies to itemize Print Schedule B only when required Produce Schedule B only when taxpayer has enough interest income to require filing Schedule B Print Form 4562 only when required Produce Form 4562 Depreciation and Amortization only when the tax return requires it Print Form 6251 only when re
50. is plays the letter template The left pane displays in tree view the applicable para graphs and keywords by category Figure 2 17 Click to expand a category or click to contract it Hover your pointer over a keyword to view its description Keywords gt F Client Information Federal Return Paragraphs 8 Federal Amended Paragraphs Federal Amended Bal Due Paragraph Expanded Federal Amended Refund Paragraph category view Federal Amended Return Paragraph Federal Amended Zero Due Paragraph Federal Estimate Paragraphs Federal Extension Paragraphs Federal Return Results Federal Amended Results Federal Estimates wlth EedatalExtepsion Recut dhadha inani aan Conditional paragraphs H A Figure 2 17 Category tree left pane of Client Communications Editor While the result letters are designed with keywords inserted to handle most situations additional keywords are available if you want to further customize the letter Tax Year 2012 Drake Software User s Manual Available Letters Software Setup Table 2 14 lists all available letter templates All letters can be modified using the Cli ent Communications Editor Templates with an asterisk indicate letters that can be generated individually or in batches separately from the tax return See Letters on page 301 Letter Template Result Letter Table 2 14 Letter Templates Available in 2012 Description Provides retu
51. isplay the Personal Client Manager on the Drake Home window for the logged in preparer check box is marked by default Display program update availability to Select which preparer groups can view update availability Selections are Administrators users with administrative rights and All preparers Bank Products State laws regard ing fees Charge ALL taxpayers the same fees Select this box to charge all clients the same supplementary fees software franchise network and additional fees regardless of whether a bank prod uct is included For more information click the Program Help link Drake PDF Printer Password Options Return Status Notification Programs Choose to automatically password protect any generated PDF documents Passwords can be assigned to PDF documents that are sent using the Drake e mail program The default password format is the first four charac ters of the client s name plus the last five digits of the client s ID The Default password drop list includes other format options These settings can be overridden during printing from the Print Selection dialog box New for 2012 Use this option to receive return status notification through TaxPoint or ABCvoice Select to generate 7216 consent forms for the cus tomer to sign Select to require contact information phone number and or e mail address on screen 1 or on the ABCV screen for ABCvoice or on the CALL screen for TaxPoint
52. le Workstations and Letters See Letters Setup on page 43 Network Options on page 16 Pay Per Return PPR clients only see PPR Colors See Color Setup on page 46 manual on CD from the Home window of the software at Help gt Online Resources or from the Drake Support website Printing See Printing Setup on page 47 If you used Drake last year you can bring forward most required program settings from your 2011 program See Updating Settings on page 79 for details Logging in as an Administrative User Setting an ADMIN Password Shortcut Double click the ADM row to edit it Tax Year 2012 Log in as ADMIN to enter setup information The administrator can access the follow ing features not available to non administrative users e Preparer setup security features in Setup gt Preparer s e Additional features in Setup gt Firm s e Network options Setup gt Data Locations e The Administrative Options tab of Setup gt Options e Additional tracking information on the ADMN screen in data entry An ADMIN password is not required If your firm chooses to have an ADMIN pass word keep a record of the password Drake cannot retrieve lost or forgotten login passwords To set a password for the ADMIN account optional 1 From the Drake Home window select Setup gt Preparer s 2 Click the Administrator ADM row and then click Edit Preparer 3 Enter a password
53. lient files drop list 3 Click OK All computers on the network must have access to the server s drive the drive on which the tax returns are stored and from which the returns will be e filed Map to the server s drive not to the Drake12 folder IMPORTANT All drives properly mapped and with Drake Software installed will appear in the Tax returns are stored here drop list and the Share settings drop list If the drive of the server does not appear in these lists consult an IT professional Drake cannot provide technical support for the network itself f AUTI DN Do not change the Data Locations settings during tax season If a change is necessary contact Drake Support Software Setup 18 Perform setup procedures before attempting to prepare or e file returns Some setup procedures are required others are optional Table 2 3 Setup Procedures Required and Optional Required Setup Procedure Optional Setup Procedures Firm s See Firm Setup on page 20 Options See Options Setup on page 27 Tax Year 2012 Drake Software User s Manual Table 2 3 Setup Procedures Required and Optional Required Setup Procedure Optional Setup Procedures ERO See ERO Setup on page 21 Pricing See Pricing Setup on page 37 Software Setup Preparer s See Preparer Setup on page 22 Macros See Macros Setup on page 38 Data Locations See Sing
54. list of firms entered in the program From the Drake Home window go to Setup gt Firm s Click Print The Report Viewer displays the report on the screen Click Print to open the Print Drake Report dialog box Change any print options necessary and then click Print again Ae YS Click Exit and then click Exit again to close the Firm Setup window An Electronic Return Originator ERO must complete ERO Setup in order to e file returns use the Drake e mail program download software updates and access the online e filing database Required fields for e filers are marked in the program by red text To set up your firm as an ERO in Drake 1 From the Drake Home window go to Setup gt ERO to open the Electronic Fil ing Setup dialog box 2 Inthe General Information section enter the account number EFIN Drake password name address ZIP code and EIN of the ERO Fields required for e fil ers are marked by red text See Figure 2 4 on page 22 21 Software Setup Drake Software User s Manual Electronic Filing Setup Enter Electronic Return Originator information below All General Information fields except Telephone Number are needed for e filing Click help for Connection Settings information General Information Account Number 00000 EFIN 000000 Drake Password Serial Number J Edit Serial Transmitter Name THE TAX DOOD Use Firm 1 Info Transmitter Address 1234 WEST MAIN STRE
55. listed in the Preparers in Security Group column 6 Click Save NOTE You do not have to assign preparers when creating a group Assign preparers at any time by returning to the Group Security dialog box To edit group settings or members select a group name and click Edit Group To delete a group select a group name and click Delete Group Note that a group must be empty must contain no preparers in order to be deleted The Group Security feature allows you to view and print two reports related to group security settings e Group Security report Lists group security settings for each group Groups are listed in order of creation with default groups first e Group Preparers report List all groups and their assigned preparers Reports are shown in the Report Viewer which allows options for printing and exporting the reports To access reports click Print in the Group Security toolbar The program displays the Group Security report first To access the Group Prepar ers report click Exit in the Report Viewer toolbar Once the Group Preparers report is open click Exit again to return to the Group Security dialog box Other features available under Setup gt Preparer s include the ability to create a pre parer s daily schedule the ability to print a list of preparers and the ability to run a search on preparers To access these features use the following procedures To create a preparer s daily
56. ll use the Alternate Print Method GDI to produce acceptable results GDI will produce good print quality but may be slower under some condi tions Drake recommends you call your printer manufacturer to determine if Arial font can be added e Nothing printed Some printers that are not PCL 5e compliant will not accept the test print These printers will use the Alternate Print Method GDI to produce acceptable results Select another printer from the Step 1 Select a printer drop list and follow the same steps to test When finished click Exit to close the Printer Test Assistant 10 Click Update to save any printer changes Click Save to exit Printer Setup Tax Year 2012 Drake Software User s Manual Software Setup Printing Sets The Printing Sets feature allows you to print multiple sets of returns for different pur poses To define printing sets 1 From the Drake Home window go to Setup gt Printing gt Printer Setup 2 Click the Sets button to open the Copies Per Set dialog box 3 Select a category from Form Categories Your selection determines which forms are displayed in the grid below 4 Double click a form in the list The default information for that form fills the text boxes above 5 In the boxes under each set name enter the number of copies of the form to be printed with each set For example to include three Schedule Cs with the Client set enter 3 under Client Enter the nub Form Name onies
57. m startup See Figure 2 2 Go to Help gt Setup Assistant to return to the Setup Assistant at any time Running Drake on a Network Tax Year 2012 Your network s designated server should meet the following minimum specifications NOTE The following specification are minimum requirements For best results Drake recommends upgrading your system above these requirements For Windows XP e 300 MHz processor e 128 MB RAM For Windows Vista and Windows 7 e 800 MHz processor or higher e 512 MB of RAM e Support for Super VGA graphics For all Windows operating systems e 200 MB of available hard drive space plus 7 MB for each state program e Internet Explorer 7 or higher e CD drive e Internet access required for regular updates An HP compatible laser printer and a TWAIN compliant scanner are also recom mended 15 Single Workstations and Network Options Drake Software User s Manual As computers are added to the network RAM and processing speed of the server and the workstations should be upgraded to improve performance Your office s network must be properly configured for Drake to run cor NOTE rectly Drake cannot provide technical support for the network itself Consult an IT professional for network setup and support Single Workstations and Network Options New for 2012 Setting up Drake on stand alone computers or on networks is easier and clearer The software automatically sets up the location a
58. n Paper Source Change the default if you have displays the current a multiple tray printer and will not be printing from the main tray default printer and the differ ent types of sets that canbe Duplex Directs printer to print duplex Only forms that are approved for printed see Printing Printer duplex will be printed as duplex Sets on page 201 Duplex all Directs printer to duplex print all forms approved or not Not available for sets to be mailed to the IRS or a state Staple If the printer supports stapling after each print job select this option to turn stapling on Print set Indicates which sets should be available for printing after a return is calculated Watermark Watermarks to be displayed on the Client and Preparer copies text respectively Defaults are Client Copy and Preparer Copy F7 Options PCL soft font Many printers require soft fonts to be downloaded before tax used to set up advanced option forms can be printed Select the desired downloading option printing options not related to a a a specific printer Classic print For preparers who prefer Basic View See Viewing a Return mode Enhanced Mode on page 197 Drake s Classic Print mode will be displayed when in Print mode 48 Tax Year 2012 Drake Software User s Manual Tab F8 Edit Printer Settings used to edit print settings for a selected printer Software Setup Table 2 15 Printing
59. n on screen 1 and the PREP screen in data entry Check for e mail during EF transmit receive The program checks for e mail received every time you transmit returns or pick up acknowledgments Combine EF steps Select Transmit Post Acks Combines all e filing steps Click OK or press Esc on selected returns to e file pick up any new acknowledgments and process the acknowledgments in one step Transmit return data to Drake for multi office web reports State EF Sends Client Status Manager CSM data sent automatically to the Multi Office Manager MOM during the EF process Suppress e filing of all state returns or select states to suppress while other state returns remain eligible EF Selection Report Options Customize EF selection reports by specifying which columns such as SSN EIN client name refund balance due etc should be included in the EF selection report Admin To access the Administrative Options tab a user must have administrative rights Options Options under the Administrative Options tab are described in Table 2 12 Table 2 12 Options Setup Administrative Options Option Description Use customized data entry selection menu Tax Year 2012 Mark the check box click the top Customize box and then select the pack age and package type to customize Click Load Menu When the data entry screen is opened click uncheck items to disable them in the Data Entr
60. nce Drake is installed on all your workstations and your network has been mapped one of your workstations should be designated as the server and the other worksta tions should linked to the server in the following manner 17 Software Setup Drake Software User s Manual 1 From the Home window in Drake go to Setup gt Data Locations to open the Data Locations dialog box See Figure 2 3 on page 16 2 Inthe Network Setup section select the drive of the workstation designated as the server from the Tax returns are stored here drop list 3 Click OK By default all workstation using Drake on a peer to peer network use the configu ration files as set up on the individual workstations To share the same configuration files as the server or some other workstation 1 From the Home window in Drake go to Setup gt Data Locations 2 Inthe Network Setup section of the Data Locations dialog box Figure 2 3 on page 16 choose the drive letter where you ve stored the configuration settings from the Share settings drop list 3 Click OK By default all prior year files are stored on the individual workstations If your work stations should share the prior year files 1 From the Home window in Drake go to Setup gt Data Locations 2 In the Location of client folders section of the Data Locations dialog box enter the drive letter of the server workstation in the Location for 2011 c
61. nd data paths for you on the Data Locations dialog box Figure 2 3 The location where you install Drake see step 5 in Table 2 1 on page 13 or step 7 in Downloading the Software on page 13 will be the default location for all current and prior year client files and returns and the default location for such configuration settings as firm and preparer setup reports macros letters pricing files preparer notes and schedules Unless you have files stored in different locations or you have a unique network setup it shouldn t be necessary to make any changes to your data locations Administrators have the option of changing these data locations to conform to a par ticular network setup Drake 2012 Data Locations DRAKEI2 CF CONFIGI2 Data Locations Select the network sharing that is appropriate for your office Drake Software requires certain files be located on the same computer used to transmit tax retums This includes client data files print fles database files and transmission fies Location of client folders Location for 2012 client fles FADRAKET2 DT Location for 2011 cient fles F ADRAKETAOT W Drake is curently running from F ADRAKE12 Network Drive Network Setup Tax retums are stored here F Drake is running from this location Al avaiable dives are listed Share settings letters pricing preparer notes scheduler fims preparers macros and reports here FADRAKE12 Drak
62. ng firm name address phone and fax numbers contact name e mail address Employer Identification Number EIN and Electronic Filer s Identification Number EFIN If the firm is not located in the U S enter the province or state the country and the postal code A DCN serial number is assigned to each return based on the firm s EFIN and DCN If two returns have the same DCN the IRS rejects one of the returns To avoid duplications DCNs are automatically advanced for each return calculated Offices that use multiple computers that are not networked must stag ger DCNs to avoid duplication DCNs should be staggered before cre ating any 2012 returns For instructions on staggering DCNs see Staggering DCNs on page 234 Non paid prep If the firm is not a paid preparer enter a non paid code here Acceptable codes are VI VITA VT VITA T TE TCE X IP IRS PREPARED AND IR IRS REVIEWED Banking Information Choose a bank and include add on fees If you ve completed your online Drake bank application through the Enterprise Office Manager EOM click Retrieve to import your banking information directly from the bank application For information on the EOM see Banking Application on page 206 Select a bank and enter the applicable add on fee and the name of the per son or entity that will receive the add on fee This name will appear on the client s Bank Information Sheet
63. nt and Payment description fields on the BILL screen Once you have cre ated a drop list it appears in the selected field In Figure 2 9 a drop list has been cre ated for Miscellaneous Code 1 and Code 2 on screen 1 As shown in the example Code 2 has the user defined referral codes BUSREF business reference and WOM REF word of mouth reference Miscellaneous Codes Arrow indicates Shere aesael drop lists User defined codes established in Setup gt Options gt Admin Options Figure 2 9 Screen 1 drop lists and user defined miscellaneous codes The instructions below explain how to create the drop list like the one in Figure 2 9 To create a drop list 1 From the Home window select Setup gt Options and click the Administrative Options tab 2 Click the second Customize button Figure 2 10 Data Entry Customization Options Use customized data entry selection menu Customize user defined data entry fields Figure 2 10 Click Customize to customize user defined data entry fields 3 Inthe Customizable Dropdowns in Data Entry dialog box double click a field to customize or select a field and click Edit The Edit Entries dialog box is opened 35 Software Setup Drake Software User s Manual 4 In the fields of the Add Entry section Figure 2 11 on page 36 enter a Code eight or fewer characters and a Description 25 or fewer characters Selected Entry Add Entry Code BUSREF
64. nvelope on which to print the addresses of the tax payer the IRS Service Center the state tax department the city tax office and for Forms K 1 Estimated payment coversheet Select this option to print estimated coversheet payment addresses to envelope Nelco ENV500 dimensions for 1040 and 1041 returns with quarterly taxes 30 Tax Year 2012 Drake Software User s Manual Software Setup Table 2 8 Options Setup Optional Documents Option NELCO hyperlink Description Click this link to go to the NELCO website to order such Drake compatible prod ucts as envelopes IRS forms and checks Letter Options all packages Select the result letter templates to be used for each package Include privacy letter with returns Select this option to print the privacy disclosure letter with every return Include engagement letter with returns Select this option to print engagement letters for all packages when the return is calculated At the end of the letter template are spaces for client and preparer signatures Engagement letters can also be produced prior to completion of the return using Tools gt Letters gt Letters Include customized supplemen tal letter with returns Print a customized letter that can be used for various purposes See Table 2 14 on page 43 Include K 1 letter with returns Print the cover letter for individual K 1s 1065 1120S and 1041 packages Referral
65. ork Infor mation fields See Franchise Network Requirements on page 203 If applicable enter in the Disclosure or Use of Tax Information field the name of the franchise or network to which tax information must be disclosed in order to apply for bank products The field facilitates compliance with IRS Regulation 7216 see Taxpayer Requirements on page 202 Click OK Preparer Setup fields and preparer security must be completed before a preparer can begin preparing and e filing returns All preparers must be entered in Preparer Setup Data entry operators can also be entered Each time a name is added to Preparer Setup a number is assigned to that name TIP 22 Include data entry operators in Preparer Setup to 1 track data entry information and 2 easily set up Front Office preparers in the Sched uler See Scheduler on page 85 Tax Year 2012 Drake Software User s Manual Software Setup Adding a Preparer To apply for a PTIN go online at www irs gov For Tax Pros and click Apply for PTIN Tax Year 2012 Information entered here determines what preparer information appears on the tax returns To add a new preparer in Drake 1 2 3 From the Drake Home window go to Setup gt Preparer s Click Add to activate the bottom half of the Preparer Setup window Enter General Information Fields required for e filers are indicated by red text Note that a PTIN is required by the IRS Ente
66. quired Produce Form 6251 Alternative Minimum Tax only when the tax return requires it Next year depreciation schedule Select this option to produce a depreciation schedule for next year in addition to the one for this year W 2 1099 R forms Produce and display in View mode all W 2 forms with the return Tax Year 2012 29 Software Setup Drake Software User s Manual Table 2 7 Options Setup Form amp Schedule Option Print two W 2 1099 Rs per page Description If return has more than one W 2 or 1099 R form print two per page Carryover worksheet Produce any carryover worksheets associated with the return Print page 2 of Schedule K 1 Produce page 2 of Schedule K 1 for Forms 1120S 1065 and 1041 Form 8879 bank account options Select bank account printing options on Form 8879 1040A EZ suppress Automatically suppress Form 1040A or 1040EZ Form 1045 page 2 NOL Automatically produce Form 1045 page 2 if the return has NOL Select to Turn On __ list if greater than Produce lists of these items W 2 W 2G 1099 M 1099 R dividends interest K 1 when the selected number in the drop list is exceeded NOTE Many of these settings can be adjusted on a per return basis See Making Changes on the Fly on page 52 Optional Options under the Optional Documents tab are described in Table 2 8 Documents Table 2 8 Options Setup Optional
67. r 2012 To remove security rights from all preparers other than administrative users go to Setup gt Preparers and click Remove Rights To remove rights for an individual employee set that person s security to Allow No Options Only an administrative user can apply security settings to a group of preparers You can create as many security groups as needed but a preparer can belong to only one security group at a time You cannot assign a preparer to more than one security group If you NOTE try to do this the preparer is removed from his or her current group and added to the new one To apply group security 1 2 From the Drake Home window go to Setup gt Preparers Click Group Security to open the Group Security dialog box Three security levels listed below and shown in Figure 2 6 are available by default If preparer data is brought forward from last year and there are preparers with any of these security levels they are automatically added to the appropriate group e Admin Users with administrative rights group cannot be deleted e Front Office Front Office rights for non preparers Scheduler access only e Full Users with full access to everything except administrative features Choose one of the following options e To add a group click Add Group Under Security Group General Infor mation Figure 2 6 enter a Group ID and a Group Description e To add preparers to an existing group double cli
68. r Login Information Note that a login name is needed for e filing and use of a password is optional 5 If applicable click Registration to enter your state registration ID California Maryland New York Oregon and Virginia only Click OK to save Indicate Return Signature Options e PIN Signature Enter the preparer s five digit PIN Signature e Use PIN for 8879 PIN Signature Select to activate the 8879 PIN signature Alternative Electronic Signature Select to automatically populate any field requiring electronic signature with the preparer s name The alternative electronic signature is printed on the Preparer s signature at the bottom of returns that have not been e filed and on returns where the preparer and ERO are different for exam IMPORTANT ple if an override field on screen 1 is used To have the alterna 7 8 9 tive electronic signature printed on a return that has been e filed you must re enter this number in the PIN for preparer s alterna tive e signature field on the PRNT screen for that return If applicable enter the firm s Republic Bank Identification Number RBIN Enter Power of Attorney information necessary for Form 2848 Power of Attor ney and Declaration of Representative Preparer Designation Select the designation under which the preparer is authorized to practice before the IRS CAF Number Enter the preparer s Central Authorization File
69. rer should be allowed access Items left blank will be inaccessi ble to the preparer See Figure 2 5 on page 24 4 f 3 File EF Tools Reports Last YearData Setup Help i V Open Return I Cale Menu bar I Print i M View 3 V Forms Based Data Entry eS Preparer can 1 open and view returns but cannot calculate or print them p Check All Uncheck All 7 a Ss ey ee N eee ee af Figure 2 5 Security setup 5 Click Save When prompted click OK Click Exit to close Preparer Setup Other options available under the Security button are shown in Table 2 4 Table 2 4 Preparer Security Options Security Option Description Set Security to Allow No Options Employee cannot access any part of the program Set Security to Allow All Options Employee can access all parts of the program except for administrative only features Set Security Equal to Existing Preparer Employee is given security settings to match those of another preparer on the list Add Preparer to Security Group Add preparer to a pre established security group See Setting Up Group Security following Front Office Scheduling Only Employee can access the Scheduler only Administrator Full ADMIN Rights Employee can access all parts of the program including administrative only features 24 Tax Year 2012 Drake Software User s Manual Software Setup it RemoveRights Setting Up Group Security Add Group Tax Yea
70. rn application is ineligible for e file e Force or suppress a customized supplemental letter engagement letter or pri vacy policy letter The result letter is the standard letter that is printed with a return It tells the client that the return has been prepared from the information provided states the amount of the refund or balance due and provides instructions for mailing the return if paper fil ing The program uses Result Letter 1 as the default To change the default letter for a return go to the LTR screen and select a new letter from the Letter drop list In addition to other result letter templates you can have the program generate a result letter in Spanish Figure 2 23 an extension letter or an amended return letter instead of the program default letter LTR Custom Paragraph for the Letter Letter v This selection overrides any entry in Setup Individual Result Letter 01 Default Individual Result Template Individual Result Template Individual Result Template amp Individual Result Template Personalize Custom pa Individual Result Template Individual Result Template Individual Result Template Individual Result Template 10 Individual Result Spanish 11 Individual Extension 12 Individual Amended A P O T tinned on ath e atencap att apte wot Oe wh Figure 2 23 Selecting the Spanish letter as the default letter for a return LTR screen To change the
71. rn results for the filed returns gives info on bank products estimates due dates mailing instructions etc as applicable Result Template Contains the same keywords and paragraph tags as the Result Letter but no pre written letter template is provided Extension Letter Explains that an application for extension has been filed Amended Letter Similar to the result letter but for an amended return Estimate Payment Reminder Scheduled Appointment Reminder Provides details for making a 2013 estimate payment individual 1040 package only Informs prior year clients of this year s appointment date and gives instructions for preparing for the appointment individual 1040 package only Referral Coupon Offers client a discount for referring another client individual 1040 package only Preseason Letter Reminder to 2011 clients that tax season is coming up all applicable packages Post season Letter Customized Supplemental Letter Engagement Letter Letter thanking 2012 clients for their business available for all applicable packages Fully customizable template that can be used to create a customer survey package or product offering sheet generic letter client coupon etc Standard engagement letter for tax services E file Status Letter Provides 2012 clients with an acknowledgment summary of their e filed returns available for all applicable packages
72. ro window enter 1234 Peachtree Street gt gt Atlanta gt Ga gt 30331 gt Fulton gt gt GA Click Save Go to screen 1 in Drake Click in the Street address field and press ALT L The macro enters 1234 Peachtree Street for the Street address line jumps the Apt field and enters At Lanta in the City field enters GA in the State field enters 30331 in the ZIP code enters Fulton in the County field then jumps ahead two fields and enters GA in the Resident State field TIP If a single macro is to allow data entry in multiple fields use heads down mode and right angle brackets gt to jump to a field Example The macro EF gt 25 gt xX gt would open the EF screen EF gt toggle heads down data entry mode to ON enter field 25 25 gt select the box to Suppress Federal State EF and all Bank Products x toggle heads down mode to OFF and save the data and escape the EF screen New for 2012 Click the Record button on the Edit Macro window and you can use key strokes to enter certain macro operators For instance click Record and The ENTER key or the TAB key inserts the field forward gt operator SHIFT ENTER or SHIFT TAB inserts the field back lt operator ALT D inserts the date D operator ESC inserts the escape from screen operator CTRL N inserts the heads down mode operator The following tables lists all the operators used in building macros Table 2 13
73. rs from the NOTE and PAD screens every time you open a Client file that contains notes or reminders Verify SSN when creating new return Require double entry of SSN or EIN helping eliminate erroneous entries Enable Windows standard keystrokes CTRL X cut CTRL C copy CTRL V paste SHIFT CTRL X autofill amended screen SHIFT CTRL C calculate return SHIFT CTRL V view return Autofill preparer and firm number on new returns Automatically enter the firm number and preparer number where required on data entry screens Magnify data entry Enlarge the active field for easier reading Activate W 2 wage and federal with holding verification fields To ensure accuracy of data entry require wage and withholding amounts be entered twice on the W2 screen Do not restrict minimum font size in 800x600 This is a sizing option for computers using an 800x600 resolution If this option is selected the program will not attempt a font substitution to retain readability Text on screens will shrink to fit as needed Use grid data entry format on avail able screens Allows you to type information into a spreadsheet environment which can result in faster data entry This feature is available for the Dependents INT DIV 8949 D and 4562 screens Language Options 1040 package only Choose between English and Spanish for menus data entry screens field specific help text and error codes
74. s Manual Billing Options under the Billing options tab are described in Table 2 10 Option Print taxpayer s SSN on the bill Table 2 10 Options Setup Billing Description Select this option to print the taxpayer s SSN on the bill Show preparer fees withheld from bank product Select this option to print on the bill the preparer fees withheld from the bank product amount Print taxpayer s phone number on the bill Select this option to have the taxpayer s phone number entered on screen 1 printed on the bill Print taxpayer s e mail address on the bill Select this option to have the taxpayer s e mail address entered on screen 1 printed on the bill Sales Tax Enter the sales tax rate to add to each bill Number must be greater than 1 For example 4 5 would represent a sales tax rate of 4 5 Billing statement format Select among seven formatting options including Billing by time preparing bill based on time spent preparing return multiplied by preparer s hourly rate as defined in Setup gt Preparers Billing by form preparing bill based on forms necessary to complete return by price entered in Setup gt Pricing program prepares a bill summary along with the option selected here unless the Bill Summary option is cleared at Setup gt Options Optional Documents tab Header on bill Select among options for the header to be printed on the bill Custom Paragraph
75. schedule From the Drake Home window go to Setup gt Preparer s Select a preparer and click Edit Preparer Click Schedule Select day and in and out times oe eS Click Apply and then click Save to save the schedule See Scheduler on page 85 for more information on using the Drake Scheduler To print a list of preparers entered into the program 1 From the Drake Home window go to Setup gt Preparer s 2 Click Print The Report Viewer displays the current preparer listing 3 Click Print and then click Print again 4 Click Exit to close the Report Viewer Click Exit again to close the Preparer Setup dialog box See Report Viewer on page 323 for more on using the Drake Report Viewer Tax Year 2012 Drake Software User s Manual Software Setup To search for preparers entered into the program A 1 From the Drake Home window go to Setup gt Preparer s mins 2 Click Search 3 Enter preparer information in the Find Preparer Record box As you type the software locates and highlights the record 4 Click Close Click Exit to close the Preparer Setup dialog box Pay Per Return Setup PPR Clients Only For information on setting up PPR see Drake Software User s Manual Supplement Pay Per Return PPR available on your Drake CD through the software from the Home window in Drake go to Help gt Online Resources and on the Drake Support site at http Support Drake Softw
76. state the balance due amount provide the e filing information and give instruc tions for mailing the check Because so much of the letters program is automatic you may not have to edit the let ter templates at all If you do need to make changes Drake has provided numerous options for doing so Before making changes please continue reading this introduction to ensure that you understand how the templates and the Client Communications Editor are structured To view a list of Rich Text Format RTF keyboard shortcuts for letters NOTE from the menu bar at the top of the Home window select Help gt Drake Software Help or press CTRL F1 In the Contents tab double click Setup double click Letters then select RTF Guide A letter in the Client Communications Editor accessed from Setup gt Letters con tains three categories of letter elements keywords text and conditional paragraphs lt Current Date gt lt Taxpayer Name and Address gt iti Text lt Greeting Title and Last Name gt Conditional Text Paragraph lt Federal Electronic Filing Paragraph gt Enclosed is your lt Current Tax Year gt Form 1040 U S Individual Income Tax Return prepared fi the information provided Your return will be electronically fled with the IRS once we receive your signed Form 8879 IRS e file Signature Authorization Figure 2 14 A letter template consists of keywords text and conditional paragraphs Keywords appear as red t
77. ual The preview feature allows you to open View mode and view a sample letter for one of 10 return types An e filed return with refund An e filed return with balance due A paper filed return with refund A paper filed return with balance due An e filed return with an extension An e filed return with an extension and balance due A paper filed return with a refund and an extension A paper filed return with a balance due and an extension A paper filed amended return with a refund A paper filed amended return with a balance due To access the preview feature click the Preview button in the toolbar of the Client Communications Editor To replace a current year template with a prior year one 1 oom PON From the Client Communications Editor click Open and select the template to replace Go to Setup gt Update Prior Year Letter and click OK Select the drive of the Drake program that contains the prior year letter Select a prior year letter Click Continue When prompted click Yes Be sure to read through the replacement letter to ensure that the information is current Use the Color Setup feature to tailor Drake screens to meet your firm s preferences TIP If you used Drake last year consider customizing colors to make your 2012 program look different from your 2011 program If you must open the 2011 program during tax season customized colors will help you avoid entering data into the old program by mistak
78. will use the default margin of 1 5 inches Figure 2 18 Left Margin Adjustment feature Values are in inches An entry of 1 for example adjusts the margin one inch to the right and an entry of 1 5 adjusts it an inch and a half Values can also be entered in increments of one tenth of an inch For example an entry of 1 adjusts the mar gin one tenth of an inch to the right see example in Figure 2 18 3 Click OK The appearance of the margin in the letter template will not change however when a letter is generated with a return you ll be able to see the margin change both in View mode and on the printed letter NOTE An entry of 0 applies the default margins Drake does not accept neg ative numbers or numbers with two decimal values such as 1 25 Each template has a default name see Table 2 14 on page 43 To assign a new name 1 From the Client Communications Editor click Open and select a letter template 2 Click Setup gt Rename Letter 3 Enter a new name in the Rename Letter dialog box and click OK The new name is displayed in the Client Communications Editor title bar To restore a template to its original default format open the template and select Setup gt Restore Original Letter 45 Software Setup Viewing Letters for Sample Return Bringing Forward a Template Color Setup Program Colors Use Define Custom Colors to create a new color 46 Drake Software User s Man
79. y Menu Click Save The selected unchecked items will not be visible or accessible to any user other than those with administrative rights See Locking Screens on page 34 33 Software Setup Drake Software User s Manual Table 2 12 Options Setup Administrative Options Option Customize user defined data entry fields Description Create option lists for the Miscellaneous Codes fields on screen 1 and the Adjustments and Payments fields on the BILL screen For step by step instructions on this feature see Customized Drop Lists on page 35 Use customized flagged fields on all returns Select this box click Flag and select a package type When the Data Entry Menu is opened click the desired screen and click each field to flag Click a field a second time to clear it Press Esc to save your changes Note This option is available for federal packages only Apply current year Admin flag set tings when updating from prior year Flags set globally in 2011 are set globally after updating data from Last Year Data gt Update from 2011 to 2012 Print due diligence documents Print due diligence documents generated from the EIC1 EIC2 EIC3 and EIC4 screens Require applicable due diligence screens to be completed Require that applicable fields on the EIC1 EIC2 EIC3 EIC4 screens be completed before the return can be e filed Enable logged in preparer s Per sonal Client Manager D

02_Installation Setup.fm - Drake Support

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