Taxing Subjects

Earn CPE at Upcoming Drake Software Update Schools®—Registration Opens Soon

Mon, 22 Jul 2024 16:00:33 -0400

Drake Software Update Schools will soon be back in session to prepare tax professionals for a new season with tax software updates and CPE credits.

Who's attending?

Our team has worked tirelessly to develop new features, which we are excited to present to tax preparers along with tax software instruction, tips, and tax and industry updates.

Attendees will have the chance to interact with our Drake Software experts like Chief Revenue Officer John Sapp, CPA, Director of Education Christine Reynolds, and Software Trainer Ann Campbell, CPA, CIA, gaining valuable insights through both the presentations and Q&A sessions.

We will also welcome esteemed industry sponsors, including Rightworks™, Gruntworx®, Kotapay®, TheTaxBook®, Protection Plus®, Drake Software banking partners, and IRS Representatives, including:

Local IRS Stakeholder Liaisons to answer your questions

Taxpayer Advocates to meet with directly and help with tax resolution

Representatives from the Taxpayer Experience Office

Don’t miss these opportunities to get direct support and provide feedback on the taxpayer experience!

Why attend?

Drake Software users and tax preparers nationwide are gearing up to attend Update Schools, where they'll network, earn up to 8 hours of CPE credit, and delve into best practices and industry updates crucial for optimizing software use.

Update Schools provide an all-encompassing experience for tax professionals: refreshing knowledge, direct interaction with experts, networking with peers and partners, and accessing valuable industry insights.

When is it?

The schedule kicks off on November 14 in Dallas, Texas, and continues through several cities, concluding on January 9 in Franklin, North Carolina. Registration and hotel discounts are available for a limited time—see Support.DrakeSoftware.com/Schools for more details.

Dallas, TX | November 14, 2024

Sheraton DFW Hotel

Franklin, NC | November 19, 2024

Drake Software Education Center

Concord (Charlotte), NC | December 5, 2024

Embassy Suites by Hilton Charlotte Concord Golf Resort & Spa

Atlantic City, NJ | December 12, 2024

Harrah’s Atlantic City

Las Vegas, NV | December 17, 2024

Caesar’s Palace

Franklin, NC | January 9, 2025

Drake Software Education Center

Can’t make it in person?

Connect with our software experts during live Q&A and gain the skills, knowledge, and CPE credits you need from your favorite easy chair with our Update School Live Webcasts.

Don't miss out on this premier event tailored for tax professionals by Drake Software. We look forward to welcoming both familiar faces and newcomers for an enriching experience!

Detailed registration and session information for both in-person schools and live webcasts can be found at Support.DrakeSoftware.com/Schools.

All trademarks not owned by Drake Software, LLC ("Drake") that appear in this blog are the property of their respective owners, who are not affiliated with, connected to, sponsoring, or sponsored by, Drake.

Measuring and Enhancing Tax Prep Client Satisfaction

Wed, 29 May 2024 12:00:00 -0400

In the realm of tax preparation, ensuring client satisfaction is not just a good practice; it's a cornerstone of success. Tax preparers who prioritize understanding their clients' satisfaction levels gain valuable insights that can significantly impact their business's growth and reputation.

But how can tax professionals effectively gauge and enhance client satisfaction?

Ask targeted questions

One effective method is through the strategic use of targeted questions. By asking clients about their experiences with the tax preparation process, professionalism, communication, and overall satisfaction, preparers can gain invaluable feedback. This feedback serves as a compass, guiding them towards areas of strength to maintain and areas that require improvement.

Here are some examples of targeted questions you can ask:

Did our team communicate effectively with you throughout the process, addressing any questions or concerns you had?
Did you feel that your tax preparer listened to your needs and understood your unique financial situation?
How would you rate the timeliness of our service in preparing your tax return?
Did you find our fees transparent and fair for the services provided?
Were there any additional services or resources you wished were available to you during the tax preparation process?

These questions can provide valuable insights into areas where the tax preparation service excels and areas where improvements may be needed. Adjustments and enhancements based on client feedback can lead to higher levels of satisfaction and loyalty among clients.

Get feedback on the tax preparation process

Remember that the tax preparation process can be intricate and overwhelming for clients. Break down questions into accessible and conversational language so that you can get accurate feedback about the ease of the process, clarity of instructions, and overall satisfaction with your services. Clearly communicate that you welcome clients to share pain points or areas of improvement.

Encourage clients to rate your practice’s professionalism

Professionalism is another critical aspect of client satisfaction. Clients expect tax preparers to exhibit professionalism in their interactions, including punctuality, thoroughness, and respect for confidentiality. By asking clients about their perception of the preparer's professionalism, valuable insights can be gained to ensure high standards are consistently met.

Invite feedback on communication methods

Communication plays a pivotal role in client satisfaction. Clear and timely communication can alleviate confusion and build trust. Asking clients about their satisfaction with the communication channels used, responsiveness to inquiries, and clarity of explanations can reveal opportunities for improvement in this crucial area.

Use Net Promotor Score (NPS) for insights on client perspectives

Tax preparers can use NPS as a valuable tool to gather useful feedback and assess client satisfaction. NPS is a metric used to measure customer loyalty based on the likelihood of customers recommending a company's services to others. It is measured on a scale from 0 to 10, and clients are categorized into three groups based on how they rated your services:

Promoters (score 9-10): Clients who are highly satisfied and likely to recommend the service.
Passives (score 7-8): Clients who are satisfied but not enthusiastic enough to actively promote the service.
Detractors (score 0-6): Clients who are dissatisfied and may spread negative feedback about the service.

After collecting responses, tax preparers can calculate the NPS by subtracting the percentage of detractors from the percentage of promoters. The result is a score that can range from -100 to +100.

Tax preparers should analyze the feedback provided by clients along with their NPS scores. This analysis can identify patterns, common themes, and specific areas where improvements are needed. This may include improving communication, enhancing service offerings, addressing specific concerns, or implementing process improvements.

NPS trends can then be tracked over time to gauge the effectiveness of your efforts in improving client satisfaction. Consistent monitoring allows you to identify improvements and track progress towards achieving higher NPS scores.

Understanding client satisfaction levels is not just beneficial but crucial for tax preparers. By actively seeking feedback through targeted questions about the tax preparation process, professionalism, and communication, preparers can identify areas of strength to maintain and pinpoint areas that require improvement. This proactive approach not only fosters client loyalty but also drives business growth and success in the competitive landscape of tax preparation.

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Tax Clients Concerned About Germs? Go Virtual with DrakePortals®

Wed, 25 Jan 2023 13:06:08 -0500

As we make our way through cold and flu season, maintaining timely service while being sympathetic to clients’ health needs and preferences is crucial. Masking and social distancing can be helpful while indoors, but how do you serve clients who need to meet virtually for their own comfort?

Your success is our top priority, which is why we designed DrakePortals to meet the digital needs of your tax practice.

How can DrakePortals replace in-person meetings to serve clients with health risks?

DrakePortals brings the safety and convenience of an in-person meeting to clients’ homes. In-office meetings allow casual conversation and instant answers to basic questions from both parties. Without an information exchange portal, phone calls would be the only way to discuss PII quickly (and safely, given the concerns of email and mobile text).

With DrakePortals, the built-in instant messaging feature keeps sensitive information secure with industry-standard encryption, all while making that info easily accessible to both parties. The portal is also branded with your tax practice name and logo, providing your clients a professional and personal experience.

How does DrakePortals improve my experience as a tax preparer?

The client experience is just part of what makes DrakePortals great for your practice. As the preparer, you’ll get integration with Drake Documents, too. This allows you to create folders and upload documents in one step, saving precious time and cutting the need to digitize physical paperwork.

For Drake Tax users, DrakePortals also makes file backup available to you from inside your tax software.

How can my clients access DrakePortals?

We recently released a new mobile app, SecureFilePro, which allows clients to securely access your portal from their phones. The app includes features like photo uploads and e-signature capture.

To access their files, clients simply download the SecureFilePro app from Google Play or the Apple App Store and sign in with the email address you have on file.

Where can I learn more about DrakePortals?

Our DrakePortals webpage has helpful information about the service, payment options, and even a 14-day free trial if you would like to explore the service yourself.

New State Forms Added to Drake Tax

Wed, 21 Dec 2022 12:58:24 -0500

Of all the factors that go into choosing tax software, one of the most important is support for state tax forms that apply to your clients. Drake Software is proud to announce the latest Drake Tax state form updates that will help tax professionals better serve clients in the 2023 filing season.

Note: Most of these forms are new and do not have public versions yet, so links redirect to informational pages rather than the forms themselves. Visit your state department of revenue page periodically for the latest tax forms and updates.

Which states have updated tax form support or e-file in Drake Tax?

Additional forms and e-file availability have been added for 10 states:

Arkansas
Florida
Illinois
Iowa
Kansas
Mississippi
Nebraska
Oregon
Washington
Wisconsin

While Washington has historically had no state tax return, 2023 will be the first year that Washington filers can claim the new Working Families Credit.

Which tax forms are newly supported in Arkansas, Florida, Illinois, and Iowa?

Four states have small but impactful updates:

Arkansas now has support for pass-through entity return support, including e-file
Florida now has support for e-file of 1120X and 1065 returns
Illinois now has support for e-file of individual amended returns
Iowa now has support for pass-through entity returns, including e-file

Which tax forms are newly supported in Kansas, Mississippi, Nebraska, Oregon, Washington, and Wisconsin?

Kansas, Mississippi, Nebraska, Oregon, Washington, and Wisconsin have significant updates to tax form support:

Kansas

K-9, Statement of Partnership or S Corporation of Tax Paid (S Corporation and Partnership Packages)
K-26, Aviation/Aerospace Credit (All Packages)
K-27, Housing Investor Tax Credit (All Packages)
K-29, Short-Line Railroad Infrastructure Credit (All Packages)
K-40SVR, Property Tax Relief for Seniors and Veterans (Individual Package)
K-69, Targeted Employment Credit (All Packages)
K-84, Technical and Community College Deferred Maintenance Credit (All Packages)
K-91, Teacher’s School and Classroom Supply Credit (Individual Package)
K-92, Restoration and Preservation Credit (All Packages)
Schedule FHBS, First-Time Home Buyer Savings Account (Individual Package)

Mississippi

Form 80-161, Tax Credit for Tax Paid by Electing Pass-Through Entity
Form 84-381, Pass-Through Entity Election

Nebraska

e-File of business packages
The Property Tax Credit
The Credit for Purchase of a Nebraska Residence in a Designated Extremely Blighted Area

Oregon

Returns for Multnomah County Preschool in Portland, including e-file for all residency statuses
Metro Supportive Housing Services in Portland, including e-file capability for all residency statuses
e-File for Corporate Activity Tax (CAT) returns to Individual, Corporation, S Corporation, Partnership, and Fiduciary package

Washington

The Working Families Credit, including e-file

Wisconsin

Where can I learn more about state tax forms supported by Drake Tax?

For a list of supported state forms, individual and business packages, and e-filing features, visit our Tax Packages page and choose a state fact sheet from the Select States drop list.

See for yourself how Drake Tax handles state taxes

Download the free trial today by clicking the button below.

IRS Pushes for More Phone Support, Hires 4,000 Customer Service Reps

Tue, 13 Dec 2022 17:31:58 -0500

After the 2022 tax season found the Internal Revenue Service spread thinner than ever before, the agency is taking steps to ensure that the first few months of 2023 go far more smoothly.

How is the IRS working to get ahead of staffing issues in the upcoming tax season?

In addition to creating job openings in Taxpayer Assistance Centers, the IRS has already hired more than 4,000 new customer service representatives. The IRS is pushing to hire 5,000 customer service reps in total—leaving fewer than 1,000 hires left to go.

"Our phone lines have been simply overwhelmed during the pandemic,” says IRS Commissioner Chuck Rettig, “and we have been unable to provide the help that IRS employees want to give and that the nation's taxpayers deserve. But help is on the way for taxpayers.”

How will these IRS hires affect taxpayers and tax preparers in 2023?

In practical terms, these new customer service hires translate to improved phone communication during the tax season.

In Rettig’s words, "The IRS is fully committed to providing the best service possible, and we are moving quickly to use new funding to help taxpayers during the busy tax season. As the newly hired employees are trained and move online in 2023, we will have more assistors on the phone than any time in recent history."

How soon will these new hires be ready for tax season?

Onboarding is underway for the new customer service representatives, including service and taxpayer experience various trainings over the course of several weeks. Hiring has been staggered, but many of these reps will be ready for action in early 2023 for tax season. The remainder will join as they complete preliminary training, and most will be actively answering phones by the time the IRS sees the highest call volumes (usually around Presidents’ Day).

How are these new positions and hires being funded?

Expansion of IRS call centers is a benefit of the Inflation Reduction Act, which was approved in August of this year. Improvement efforts do not end there: The IRS is also seeking new employees in information technology and compliance, taking a holistic approach to improving taxpayer services overall.

All that's left now is to wait and see if these aspirations can be met. Still, the tax-filing landscape for 2023 looks promising; 4,000 new customer service hires certainly call for celebration.

Sources: IR-2022-197; IR-2022-191

IRS Disaster Relief in 2022

Wed, 02 Nov 2022 13:22:54 -0400

Victims receive extended deadlines, deferred taxes, and more

When disaster strikes, the government’s disaster-declaration process can help victims recover from financial losses. Governors in affected states submit a major disaster area request to the president through the Federal Emergency Management Agency (FEMA); if granted, one benefit victims receive is tax relief.

Generally, this relief allows taxpayers to claim disaster-related losses on their prior-year return and provides additional time to meet filing or payment deadlines. In 2022, several states have been granted the disaster area designation. Below is an overview of federally declared disasters, their affected areas, and tax relief granted.

What recent natural disasters have been federally recognized in 2022?

Recent disasters in 2022 include Hurricane Ian, Hurricane Fiona, and severe storms in Alaska. States affected by these storms have received major disaster declarations, granting tax relief to individuals and businesses residing within affected locations.

Residents and businesses in North Carolina, South Carolina, and Florida qualify for tax relief due to Hurricane Ian, including a penalty waiver for anyone who “sells or uses dyed diesel fuel for highway use” in the state of Florida between September 28, 2022, and October 19, 2022. For more information, see our blog posts on tax relief for North Carolina, South Carolina, and Florida.

In Puerto Rico, victims of Hurricane Fiona in all municipalities qualify for tax deadline extensions. According to the IRS, residents and businesses in Puerto Rico “have until February 15, 2023, to file various federal individual and business tax returns and make tax payments.”

In Alaska, residents and businesses affected by the severe storms that cause landslides and flooding qualify for relief, too. Deadlines for paying taxes and filing individual and business returns that fall after September 15, 2022 have been extended to February 15, 2023. This relief applies to the Regional Education Attendance Areas of Bering Strait, Kashunamiut, Lower Kuskokwim, and Lower Yukon.

Other disasters include severe storms, wildfires, and flooding. For more information, see the list of affected states below.

Which states and territories contain federally declared disaster areas?

Certain counties, municipalities, and islands of the following states and territories have been granted disaster area status in 2022:

Did farmers receive disaster relief in 2022?

Farmers in 44 states and other regions who were affected by droughts in 2022 qualify for special disaster relief. According to the IRS, “farmers and ranchers in applicable regions forced to sell livestock because of drought conditions ... have more time to replace their livestock and defer tax on any gains from the forced sales.” For more information, see Notice 2022-43.

Where can I learn more about disaster relief in 2022?

The IRS regularly updates the Tax Relief in Disaster Situations page on IRS.gov. You can also visit the Around the Nation page, which lists tax relief by state.

Sources: Disaster Assistance and Emergency Relief for Individuals and Businesses; IR-2022-177; IR-2022-161; IR-2022-166; Tax Relief in Disaster Situations; Notice 2022-43; Around the Nation

Drake Tax Feature Spotlight: Search Data Entry with the Selector Field

Wed, 19 Oct 2022 08:55:18 -0400

In this series, learn about a few popular Drake Tax features and navigation tools that help you save time and stay productive.

Preparing tax returns is hardly a linear process. With data cross-referencing itself throughout both current and prior-year returns, navigation tools are vital to an efficient tax-prep workflow.

The Drake Tax Selector Field feature makes navigation—particularly non-linear navigation—smooth and easily accessible.

The Selector Field at a glance

At the bottom of all Data Entry Menus, you will find the Selector Field. In that field, you can search for codes, form numbers, or Data Entry Menu tabs. You can even use keywords and phrases if you can’t remember where a desired screen is located.

How do I use the Selector Field?

Accessing the Selector Field is simple:

From the Data Entry Menu, type the code, keyword, or amount. Let’s use $15,487 as an example.
Press Enter.
The Search Results window will pop up, showing that the amount was entered on Screen 3.

ALT: Screen capture of the Search Results window. In a table, three columns are labelled “Screen/State Code,” “Description,” and “Return Data.” In the first row, each column respectively reads “FED - 3,” “Income,” and “15487.”

Can I search using partial words or terms?

Yes—for instance, you can enter “DEP” to pull up instances of the term “dependents.” You can also use non-tax-related terms, such as “LEMONADE,” to see all the screens containing information on your client’s world-famous lemonade stand.

See how the Selector Field saves time with a Drake Tax free trial

Ready to explore Drake Tax and the Selector Field feature for yourself? Download a free trial today—simply click the button below to get started.

IRS Reminds Taxpayers of Disaster Extensions for Tax Returns and FBAR

Fri, 14 Oct 2022 17:53:55 -0400

While Monday, October 17 is the deadline to file tax returns for those who requested an extension earlier this year, some taxpayers may have additional time due to military service or disaster assistance. Additionally, the FBAR deadline has been extended for some due to natural disasters.

What type of military service qualifies taxpayers for additional time to file individual tax returns?

Service rendered in a combat zone by members of the military and others automatically receive additional time to file tax returns. After leaving a combat zone, taxpayers typically have 180 days to file tax returns and pay any taxes due.

Which disasters qualify taxpayers for additional time to file individual tax returns?

States and counties that have been granted emergency status due to nationally declared disasters may qualify for additional time to file.

Taxpayers have until November 15 to file various tax returns (both individual and business) if they are residents of, or operate a business in, Missouri, Kentucky, or the island of St. Croix in the U.S. Virgin Islands. Members of the Tribal Nation of the Salt River Pima Maricopa Indian Community also qualify for this deadline extension.

For those who live or operate a business in Florida, Puerto Rico, North Carolina, South Carolina, parts of Alaska and Hinds County, or Mississippi, the individual and business return deadlines have been pushed to February 15, 2023.

For more information and updates, the IRS has a designated disaster relief page available. The IRS also urges taxpayers to file as soon as possible to mitigate processing delays.

Is the October 15 FBAR deadline affected by tax relief for disasters?

Residents of Alaska, Puerto Rico, Florida, North Carolina and South Carolina residents may have a 2021 Foreign Bank and Financial Accounts (FBAR) due-date extension from October 15, 2022, to February 15, 2023.

Taxpayers who received the automatic FBAR extension in April 2022 do not need to request an extension.

For more information and updates, review published FBAR Relief Notices.

Sources: IR-2022-175; IR-2022-174