17813: Drake Zero - Third Party Designee Setup

You can set up a global third party designee, or you can enter a designee on a return-by-return basis. If you set up a global designee, you can still override the global selection inside a specific return. 

Starting in tax year 2020, the third party designee section is located on Form 1040, page 2. 

In tax year 2019, the third party designee indicator appears in one of two locations on Form 1040, page 2, depending on who is the designee.

• The Third Party Designee section is only completed (and the Yes box marked) if the designee is someone other than the paid preparer. 
• If the paid preparer is also the 3rd party designee, there is a checkbox 3rd Party Designee in the Paid Preparer Use Only section of Form 1040 that will be marked. In this circumstance, nothing will appear in the Third Party Designee section. 

In tax year 2018, third party designee information for someone other than the return preparer flows to Schedule 6. See Related Links for details.

For all years, if there is no third party designee on the return, only the No checkbox is marked in the Third Party Designee section. This occurs if NONE is selected globally or if the PREP screen override is used. See below for more information on these options. 

Global Setup

1. Log in to the Drake Zero hub.
2. Launch the year of Drake Zero for which you are completing setup.
3. On the Setup > Setup Options > Optional Items on Return tab, select an option from the drop list:
   •  
   • Your choices are:
     1. None -This option does not generate a third party designee. You can still indicate a 3^rd party designee on a selective basis (see below). 
     2. Preparer 1 through 9 - You can select any one of the first nine preparers that you have set up at Setup > Preparer Setup.
     3. Return Preparer. This option uses the current preparer for each return.
     4. ERO. This option uses the preparer indicated in the Default ERO drop down menu on the Setup > Setup Options > Electronic Filing tab.
4. For the selected designee under any of these choices, you must
   1. enter a 5-digit PIN at Setup > Preparer Setup,
   2. enter a telephone number under Setup > Firm Setup. 
   3. If you have selected ERO, the preparer shown on the Setup > Setup Options > Electronic Filing tab, as Default ERO, must have a PIN.
   4. If you have selected Return Preparer, the return preparer for each return must have a PIN. If there is no PIN entered under Setup > Preparer Setup, that preparer will not appear as the third party designee, even if selected globally. 
5. To override the third party designee from within a return, use the PREP screen information described below.

Individual Setup

To indicate a third party designee:

• In the return, search for and open the PREP screen. 
• Select the Yes radio button for Allow another person to discuss this return with IRS,
• Enter the third party designee information, including:
  • First Name
  • Last Name
  • Phone
  • PIN 
  • Email - optional. 

To indicate that there is no third party designee on a single return,

• In the return, open the PREP screen. 
• Select the No radio button for Allow another person to discuss this return with IRS. 

Important: if you select Yes and do not complete the rest of the block, no third party information will be shown and there will be EF messages preventing e-filing. Yes overrides any global third party designee information with what is entered on the PREP screen.