Overview

Banks allow you to include an additional fee to a return when using a bank product. This is in addition to any preparer fees that you have set up in the software. This add-on fee is deducted from the taxpayer’s refund and held in a separate bank account, from which monthly distributions are made to preparers around the middle of each month for returns acknowledged, accepted, and fully funded during the preceding month. The funding date, rather than the transmission date, is what determines when the deposit will be made. Drake Software charges a 5% convenience fee for facilitating the add-on fee processing (withheld from the deposit).

Similar to the add-on fee, Tax Product Group (TPG), Republic, and Refundo also allow a Document Prep Fee to be included. These fees are paid when the preparer fees are paid (not withheld like add-on fees).

The maximum amount for add-on and document prep fees may vary depending on the bank with whom you are partnered.

These fees are optional and are configured in Drake Tax by going to Setup > Firms once your online bank application has been approved. Click the Confirm button then Save to prevent a mismatch.

Reports

Several reporting options are available when you log in to the Drake Software Support website > Reports.

If you choose Add-on Fees, select the year and an individual month as the time period for the report, or select the year and YTD (Year to Date) to generate a report for the entire filing year. When the report is displayed, you can see the breakdown for your office by clicking the link to your EFIN (under the EFIN column).

The Fees report allows you to see the status of the fee, along with individual return details.