#United States #AI features #Tax Preparation #Drake Software #Franklin, North Carolina

Drake Software Unveils Enhanced AI Features for Tax Year 2026

As tax season approaches, Drake Software, renowned for its leadership in tax preparation technology, is ready to unveil significant upgrades to its offerings. These enhancements, driven primarily by native AI capabilities, aim to not only streamline workflows but also empower tax professionals to dedicate more time to their clients rather than routine tasks.

This new suite includes Drake SmartExtract™, an innovative tool that simplifies the extraction of data from client tax documents. By utilizing advanced AI, SmartExtract can convert client information from a variety of tax documents directly into return-ready data. This functionality is anticipated to be crucial in mitigating the overwhelmed feelings many preparers experience during peak filing times.

Features of Drake SmartExtract

SmartExtract has been designed after closely collaborating with Drake's customer base. It integrates seamlessly into the existing workflows that over 70,000 tax professionals have come to rely on. During its beta phase, SmartExtract allows users to extract data from commonly used documents, including:

• - W-2 and 1098 Forms
• - Various forms of 1099 (including 1099-INT, 1099-DIV, and others)
• - Schedules K-1 from Forms 1065, 1041, and 1120-S

Tax preparers will have the chance to review and adjust this extracted information before integrating it into their returns, dramatically cutting down the need for manual data entry. Drake SmartExtract is set to be available for purchase in December, with pricing models designed to accommodate the needs of different firms.

A Revamped Client Intake Experience

In addition to enhancing tax document processing, Drake Software has also reimagined Drake Portals, aiming to make client interactions more efficient. The updated system simplifies document uploads and facilitates secure communication between clients and their preparers. With AI-powered document ingestion, Portals can now automatically categorize and connect submitted documents to relevant checklist items, further easing the preparer's workload.

The newly introduced Guided Organizer™ streamlines the onboarding process for new clients, offering personalized checklists and questions tailored based on last year’s filings, ensuring that no necessary documents fall through the cracks.

AI Assistant for Instant Support

Another groundbreaking feature is the AI Assistant, integrated directly into the tax preparation workflow. This tool allows tax preparers to ask questions through natural language chat, receiving immediate answers related to forms, alerts, and calculations without having to navigate away from their work. This assists in easing the cognitive load often experienced during critical filing periods.

The Bigger Picture

Drake Software's upgrades align with the growing demand among tax professionals to reclaim precious time during busier tax months. Vice President of Product Management, Noha Ghazouani, emphasizes the philosophy behind these enhancements: “We’re about letting tax professionals do what they're best at—serving their clients—through intelligent automation that respects their expertise.”

With these significant advancements, Drake Software is well-positioned to help tax professionals face the challenges of the 2026 tax season head-on, reducing manual processes while enhancing the overall client experience—something every preparer can appreciate.

About Drake Software

Founded in 1977, Drake Software has consistently evolved its products to meet the needs of tax professionals, ensuring they serve their clients efficiently and confidently. Beyond just tax preparation, Drake integrates various functions such as client intake, electronic signatures, and post-filing support, making it a comprehensive solution for modern tax firms.

For more information about these innovative features and pricing details, tax professionals are encouraged to visit the official Drake Software website prior to the commencement of the 2026 tax season.