User's Manual - Drake Software

Drake Software User’s Manual
Other Special Features in Data Entry
such as for returns affected by disasters or other IRS–extended due date occurrences.)
• Date balance paid if different — An entry overrides the calculated balance due.
Interest Rates
If the global option is selected at Setup > Options > Optional Items on Return tab,
the program bases its penalty-and-interest calculations on the interest rate for the quarter.
You can override program calculations by manually entering penalty or interest
amounts on the LATE screen. You can also manually enter interest rates at Setup >
Options > Optional Items on Return tab.
Manually
Entering
Rates
Drake automatically updates quarterly interest rates for the current and following year
as they are announced by the IRS. For tax year 2012, for example, interest rates will
be updated for 2012 and 2013. After 2013, quarterly rates must be manually entered in
the 2012 program for late returns for tax year 2012.
To enter quarterly rates manually:
1. From the Home window, select Setup > Options > Optional Items on Return.
2. Enter the available rates for each applicable quarter (shown in Figure 5-60 on
page 182). Percentages should be entered using four digits, with the last two digits
coming after the decimal (for example, you would enter 1.5% as 01.50).
3. Click OK to exit the screen and save the settings.
NOTES
If the Automatically calculate... box is marked, the program applies
the rates to all late-filed returns. If it is not marked, the program applies
the rates only if the LATE screen is used for a return.
If an interest rate is entered for a quarter that has received (or will
receive) an automatic update, the entry overrides the updated rate.
Updated rates are not visible in Setup > Options > Optional Items on
Return tab; all rates appear as 00.00 unless a new rate is entered.
Overriding
Program
Calculations
The LATE screen has the following fields for overriding penalty and interest amounts
that would otherwise be calculated by the program:
• Failure to file penalty — Enter the penalty amount for failing to file on time.
• Failure to pay penalty — Enter the penalty amount for failing to pay.
• Interest — Enter the amount of interest incurred.
Other Special Features in Data Entry
Special features are available to help tax preparers transmit certain documents with
returns, and compare and review information more effectively, include all required
details on a return, and track a return’s progress.
Tax Year 2012 183