Drake Tax – Third-Party Designee Setup
Article #: 10820
Last Updated: October 21, 2024
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.
The third-party designee section is located on Form 1040, page 2. If there is no third-party designee on the return, only the No check box is marked in the Third Party Designee section.
Tip 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
On the Setup > Options > Optional Items on Return tab, select an option from the drop list Third party designee. Your choices are:
-
None – This option does not generate a third-party designee. You can still indicate a third-party designee on a selective basis (see below).
-
Preparer 1 – 9 – You can select any one of the first nine preparers that you have set up at Setup > Preparer(s).
-
Return Preparer – This option uses the current preparer for each return.
-
ERO – This option uses the preparer indicated in the Default ERO drop down menu on the Setup > Options > EF tab.
For the selected designee under any of these choices, you must:
-
Enter a 5-digit PIN at Setup > Preparer(s).
-
Enter a telephone number under Setup > Firms.
If you have selected ERO, the preparer shown on the Setup > Options > EF tab, as Default ERO, must have a PIN.
If you have selected Return Preparer, the return preparer for each return must have a PIN. If there is no PIN entered under Setup > Preparers, that preparer will not appear as the third party designee, even if selected globally.
Tip To override the third party designee from within a return, use the PREP screen information described below.
Individual (Per Return) Setup
To indicate a third-party designee,
-
In the return, open the PREP screen.
-
Select Y from the drop list Allow another person to discuss this return with IRS,
-
Enter the third party designee information, including:
-
First Name – If not entered, EF Message 0767 generates.
-
Last Name – If not entered, EF Message 0767 generates.
-
Phone – If not entered, EF Messages 0767 and 5933 generate.
-
PIN – If not entered, EF Messages 0767 and 5933 generate.
-
Email – Optional.
-
To indicate NO third party designee on a single return,
-
In the return, open the PREP screen.
-
Select N from the drop list Allow another person to discuss this return with IRS.
Important if you select Y and do not complete the rest of the block, no third party information will be shown, but there will be EF messages preventing e-filing. Y overrides any global third party designee information with what is entered on the PREP screen.