User's Manual - Drake Software

Drake Software User’s Manual
Features for Late-Filed Returns
Figure 5-59: Select one box to indicate the nature of the account
• For Part III only — This section must be completed only if Owned Jointly (III)
was selected. (See Figure 5-59.)
• For Part IV, V only — This section must be completed only if item IV or V was
selected. (See Figure 5-59.)
The program generates only those pages of the form that are applicable. For example,
if Owned Jointly (III) is selected, only pages 1 and 3 of the form are printed, since
page 2 covers only accounts that are owned separately (selection II in Figure 5-59),
and page 3 covers only jointly owned accounts. (Page 1 contains taxpayer data.).
NOTE
Section 4 applies to either “signature but no financial interest” (IV) or
“consolidated report” (V). If IV is selected and a First name is entered
on line 36, the nine-digit Account owner ID number from line 35 will
be printed as an SSN. If V is selected, or if IV is selected and line 36 is
blank, the Account owner ID number will be printed as an EIN.
Features for Late-Filed Returns
Drake calculates the late-filing penalty, late payment of tax penalty, and interest on
late-filed 1040 returns. You can manually enter interest rates as needed and override
certain components (such as interest owed) that affect system calculations of penalty
and interest.
Penalty and Interest Calculation
You can set up the program to calculate penalties and interest for all late-filed returns,
or you can have penalties and interest calculated on a per-return (“on-the-fly”) basis.
Global
Option
To have the program calculate penalties and interest for all late-filing clients based on
the filing dates:
1. From the Home window, go to Setup > Options > Optional Items on Return.
2. Ensure that the Automatically calculate... box is marked (Figure 5-60 on
page 182).
Tax Year 2012 181