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.

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 > Preparers and Users.

• 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 > Preparers and Users.

• 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 and Users, that preparer will not appear as the third party designee, even if selected globally.

See Drake Tax – Single-User and Multi-User Versions for limitations on the PREP screen when using the single-user version of Drake Tax.

Individual (Per Return) Setup

To indicate a third-party designee,

1. In the return, open the PREP screen.

2. Select Y from the drop list Allow another person to discuss this return with IRS,

3. 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,

1. In the return, open the PREP screen.

2. Select N from the drop list Allow another person to discuss this return with IRS.