Set Up Preparer

To set up a new preparer, follow these steps: 

1. On the Home window of the software, select Setup > Preparer(s) to open the Preparer Setup dialog box.

2. Click the Add icon:

   
   

3. Complete the Preparer Setup window.
   

   • Preparer Name - Enter the preparer's name as it should appear on the return (if paid preparer). (Required)

   • PTIN - enter the preparer's PTIN. If the person does not have a PTIN, see below.

   • Login Information. A Username is required for the preparer and must be used by the preparer to log into the software. The preparer will be required to set up a password the first time they log in. (Required)

     Important  Drake Software does not store login information for recovery purposes, however, a self-service password recovery option is available on the login page. The administrator can also click Reset Password on the preparer setup screen in any year of Drake Tax.

   • Disable Multi-Factor Authentication (MFA) - starting in Drake Tax 2021, this option is not selected by default. To disable the MFA option for a preparer, the Primary Administrator will need to select this option. See Multi-Factor Authentication (MFA) Now Required (IR-2024-201) before making a selection.

   • Return Signature Options. A five-digit PIN is required for a preparer to sign a return for e-filing. The field 8879 PIN Signature enables a preparer to sign Form 8879 and Alternative Electronic Signature enables automatic preparer signature of documents that include a separate signature line for a paid tax preparer (see Drake Tax – Setting Up Alternative Electronic Signatures).

   • State Registration Numbers. Some states require preparers to be registered. Click Registration to enter registration numbers required for those states. (Optional)

   • Set preparer security – click Security and select the applicable security level. Administrator will set the preparer’s security to the highest level.

     Caution  If you save the preparer setup without setting security, the preparer security is set to no options - the preparer sees only disabled ("grayed out") menus and cannot use the software functions.

     The setup assistant will display a red X for preparers if no security level is chosen.

4. Save the preparer settings - you must click Save at the top of the dialog box to save the preparer settings.

Edit Preparer

You can edit an existing preparer by selecting the preparer and clicking the Edit Preparer icon on the toolbar (or simply double-click the preparer name in the list). Click Save to save any changes.

Delete Preparer

Go to Setup > Preparers and select the preparer to be deleted. Click on Security and choose Delete selected preparer from the drop list.

Warning “Red indicates missing e-Filing data"

The warning is always visible - it is for informational purposes to ensure you complete at least those required fields if you expect to e-file. As long as the required fields are completed, the preparer is set up correctly for e-filing.

No PTIN

If you do not enter a PTIN when setting up a new preparer, the software will generate a unique code in lieu of a PTIN so that they can log in to the software the first time and set up their password. Be sure to write down this unique code as it is not recorded by the software and cannot be retrieved.

A valid PTIN is required for:

• Anyone who prepares federal tax returns for compensation.

• Anyone who assists in preparing federal tax returns for compensation.

• All enrolled agents.

See Drake Tax – PTIN Requirements and Software Setup for more information.