For tax year 2024, customers will have a new product to choose when purchasing Drake Tax Pro or Drake Tax 1040: Single User or Multi-User. The version you choose depends on the number of Users in your firm.

Watch the video Single User vs. Multi-User for more information.

User

For Drake Tax purposes, a User is a Tax Preparer who, per IRS guidelines, must have a PTIN. Per the IRS, anyone who prepares or assists in preparing federal tax returns for compensation must have a valid PTIN before preparing returns. Users (Tax Preparers) are considered any of the following:

• A signing tax preparer

• A nonsigning tax preparer

• A supervised registered tax preparer

Staff Members

Support Staff are not tax return preparers; anyone who is not required to have a PTIN is not counted as a User. This includes staff members who perform tasks such as data entry, scheduling, reporting, client services, intake, and managing client information. Examples of Support Staff include:

• A data entry clerk, who enters data into the software while being employed

• An office assistant who performs tasks in the software related to workflow, customer intake and scheduling, reporting, and customer service

Version Selection

Each tax return preparer in your firm with a PTIN is counted as a User. The Single-User version is for businesses with one tax return preparer (PTIN holder) only and is limited to one User. Firms with multiple tax return preparers (Users) should purchase the Multi-User version.

• If you have one tax preparer in your firm, choose the Single-User version of Drake Tax, which allows for one User.

• If you have two or more tax preparers in your firm, choose the Multi-User version, which allows for an unlimited number of Users.

• If you have more than one firm, choose the Multi-User version. The Multi-User version allows multiple firms, while the Single-User version only allows one firm to be set up; this firm must be used for all returns.

Both versions allow for an unlimited number of Support Staff.

Examples

The following examples illustrate single-user and multi-user scenarios.

Example A

Jane owns Jane’s Tax Service and prepares returns for individuals and businesses. Jane has a PTIN and signs the returns. Jane’s husband, Tom, works in the office and helps Jane with day-to-day operations. Tom schedules appointments, updates client information in Drake Tax as needed, assists clients with preparing for appointments, and maintains software and computer updates.

Jane is a tax preparer, and therefore a User in Drake Tax. Tom performs many office tasks but does not prepare or assist in preparing tax returns and does not have a PTIN. Tom is not a tax return preparer.

Since Jane’s Tax Service has one tax preparer, Jane should purchase the Single-User version of Drake Tax.

Example B

Bill and Sue Finley own and operate Finley’s Tax Service. Sue prepares tax returns for their clients. Bill primarily performs bookkeeping services for their business clients, but he substantially aids Sue in preparing tax returns. They both have PTINs, but Sue typically signs all tax returns.

Their daughter, Annie, works in the office in an administrative role—serving as a receptionist, answering phone calls, scheduling, and occasionally entering or updating client information in Drake Tax. Annie does not prepare or assist in preparing tax returns and therefore does not have a PTIN.

While Bill’s main focus is not tax preparation, he does provide a substantial amount of assistance in preparing tax returns and is therefore required by the IRS to have PTIN. Sue and Bill are both tax preparers and would be considered Users in Drake Tax; Annie is not a tax preparer.

Since there is more than one User at Finley’s Tax Service, the firm would need to purchase the Multi-User version of Drake Tax.

FAQs