Overview

Each year, Drake Tax releases the new year of Drake Tax in December (historically the first week of December). The program that is available in December is not the full program. It is designed for beginning of season activities, such as installation, networking, setup, and scheduling. In January, additional files will be released as an update. This update will contain state programs and the most up to date federal calculations.

You must get the updates that are released in January to experience the full functionality of the program. If you do not want to use the program until January, simply install and get the updated program in January.

December Recommendations

• Confirm setting updates, or re-update settings from the prior year (if you used Drake Tax last year).

• Complete other setup items, including:

  • Letters

  • Pricing

  • Options

  • Signature Pads

  • Printers

  • Email

• Start Scheduling appointments with the Drake Scheduler.

• Generate and distribute Organizers by email or with Drake Portals.

• Review the what's new information.

• Wait to:

  • Update clients.

  • Prepare live returns (calculations are not final).

    Tip  While it is possible to bring clients forward one at a time during the pre-season release, we do not recommend pulling clients forward in December. The program is still being finalized, and it may be more beneficial to wait until you install the January updates to update your client's returns. Batch update is also available in the January update (see below for details).

    Practice or test returns are available if you want to test functionality.

Summary of Differences

The chart below identifies specific differences between the program as it appears in December and January:

Category	December	January
General Purpose	Allows offices to install the program, network Drake Tax in the office, set up the Scheduler and begin scheduling appointments, tailor software settings to suit the office's needs, test e-file returns, and generate Organizers in preparation for the upcoming season.	Calculations are finalized with the update (based upon finalized IRS publications and instructions) and the state programs are available for installation.
e-Filing	Test returns only.	Allows test returns, federal returns, and returns for states (that are available for e-file) to be transmitted. Historically, the IRS has begun processing returns sometime in January. In those cases, Drake Tax has typically held any returns transmitted by preparers and released them to the IRS and states as soon as those agencies were open for processing. (According to IRS Publication 1345, the agency "does not consider current filing year returns held prior to the date it accepts transmission of electronic returns stockpiled." For more information on what the IRS does consider stockpiling, see Publication 1345).
Updating Clients	Clients may be updated one at a time under Last Year Data > Update Clients. Batch updating is not available in December.	Clients may be updated in batches. Drake Software recommends updating clients one at a time to ensure that your client list remains up-to-date. .
Calculations	The calculations are not final. Many are still subject to change based on possible IRS changes or clarifications, or are pending approval with the IRS.	The most up-to-date calculations provided by the states and the IRS are integrated into all packages. As always, calculations are subject to change as a result of federal and state changes in tax law. Keep in mind that some states may still be in the process of finalizing their information -- any updates to state programs or releases of state forms will occur as soon as possible. All returns must be calculated again after installing updates and before e-filing.
States	Not yet available.	States can be installed during the January update, or by going to Tools > Install State Programs after installation.
Organizers and Proformas	The ability to create Organizers and Proformas are one of the main purposes of the December release, and can be generated for clients in batches, or one at a time, under the Last Year Data menu.	Will be available throughout the year.
K-1 Export	Not available.	Available once all calculations have been finalized.
Required to be installed?	You are not required to use the program in December unless you plan to engage in preseason activities.	You must install the update to take advantage of all functionality, including installing states.

Frequently Asked Questions