Restricted States

Some states put restrictions on what types of additional fees may be charged for taxpayers with bank products. Those states are Arkansas, Connecticut, Illinois, Maryland, and New York. For Maine, preparers should contact the banking commission for details on any restrictions. Click the Program Help link on Setup > Options > Administrative Options tab > Charge ALL taxpayers the same fees... for more information.

Watch the video Administrative Options Setup for a demonstration.

If you are in a restricted state, the setting is enabled by default. Selecting or clearing it on Setup > Options has no effect. You are in a restricted state if that state appears in ANY of your state address fields on the Drake Software Support website.

The option affects the fees listed below. For preparers in a restricted state, and for preparers who have selected the option, the fees listed below are charged to all clients, regardless of whether the client has opted for a bank product. The descriptions and amounts shown on the bill cannot be changed. These fees are withdrawn from the taxpayer's bank product if there is one. Otherwise, they appear on the Bill and it is the preparer's responsibility to collect them.

• Software fee

• Franchise/network fees (indicated at Setup > ERO)

• Additional (add-on) fees (indicated at Setup > Firms)

For more information regarding allowable fees for returns filed in Arkansas, Illinois, Maryland, Maine, Connecticut or New York, see:

• Arkansas Refund Anticipation Loan Act

• Section 105.230 of the Illinois DOR Regulations and Drake Tax - IL - Bank Products and Fees

• Chapter 730 (House Bill 1206) of the Maryland Tax Law

• Chapter 248 of the Maine Tax Law

• CT Special Notice 2017(8) and Drake Tax - CT - Requirements for Preparers

• Section 32 of the New York Tax Law and Drake Tax - NY: Important Information For All NY Preparers

Code 7040 B-ack

If any of your Drake Software account addresses are in a restricted state and your ERO setup address is in a non-restricted state, you may receive a Drake B-ack for returns with a bank product. To troubleshoot the reject, verify the accuracy of all of the state fields on your account information located under the Drake Software Support website > Account > Account Info and Bank Application pages.

• If the states listed are correct, you may resolve this reject by selecting Charge ALL taxpayers the same fees... under Setup > Options > Administrative Options. Click OK, then re-calculate and re-transmit the impacted returns.

• If you have a typo in the state field on your account page,

  • Correct the state field.

  • Save your changes.

  • Wait at least 15 minutes.

  • Then go to Setup > Firms > Edit > click Confirm > Save.