I have to do a return for a person who needs to apply for an ITIN, how can I start a return in Drake without this number?
Beginning in Drake16, you will have the ability to start a return with a temporary ITIN number that will be used as a placeholder until the IRS issues a valid ITIN. The return will print without anything in the SSN field for the ITIN applicant. Important: a return created in this fashion is not eligible for e-file.
Pay-Per-Return (PPR) Users: It is not recommended that PPR users utilize this new feature due to limitations regarding the Change ID Number on Return function when in PPR mode. When the ITIN applicant is the primary taxpayer, you can open a return with a dummy number, since the primary taxpayer has neither SSN nor ITIN. The dummy number will continue to be the file number by which the return is identified. When the ITIN is assigned, you can change the file number (Tools > File Maintenance > Change ID Number on Return). This will be charged as an additional return for PPR users. For more information on PPR return redemption, see the PPR Manual.
To use this feature, take the following steps:
- Open a return using the Open/Create icon from the main page of Drake.
- From the Open/Create window, check the box at the very bottom that says Create return using temporary ITIN.
- An Open Return warning will display alerting the taxpayer that a return created in this fashion is not eligible for e-file until the valid ID is obtained. Click OK.
- The screen will return to the Open/Create window with an auto-filled ID number. The ID number and return types will be grayed out. Click OK.
- You will be alerted that the return does not exist. Click Yes to begin a new return.
- You will be prompted to enter the client's name to start the return. The 1040 is the only available option for this feature. Once the client's name is entered, click OK and the return will be opened.
- On Federal screen 1, the SSN box will be empty and highlighted in light blue.
- You can disregard the required field error that generates when you attempt to close the screen.
- Complete the screen as needed, then click Cancel to exit the screen without making an entry in the SSN box.
- If any number is entered in the SSN field on screen 1, it will be printed on the return. The temporary ITIN creation function is designed to allow the SSN field to be blank when printed. When viewing the return, the SSN field for the ITIN applicant will be blank.
Changing Temporary ID to Valid ITIN
To change the ITIN associated with the return:
- Select Tools > File Maintenance > Change ID Number on Return.
- Enter the temporary SSN/ITIN generated by the software in the field indicated.
- Enter the correct (valid) ITIN in the field indicated.
- Click Continue.
- Click Exit when finished.
- After the file has been changed, it is recommended that you run the Repair Index Files tool to update the Client Name.
To avoid MESSAGES or NOTES pages when changing the entered ID Number, DO NOT enter changes on screen 1 within the return. Instead use Tools > File Maintenance > Change ID Number on Return. The return will not be eligible for e-filing until this process has been completed.
For more information see the video Temporary ITIN, Related Links below, or the Drake Software User's Manual.