AI-powered tax document extraction, reimagined client intake and an in-workflow Assistant help tax professionals spend less time on manual work and more time with clients.

FRANKLIN, N.C., Nov. 5, 2026 /PRNewswire/ — This upcoming season, Drake Software®, a leader in professional tax preparation software, is putting more native AI capabilities to work right in the software that more than 70,000 tax professionals know and trust. With Drake SmartExtract™ (beta), a reimagined Drake Portals® experience and an AI Assistant built into Drake Tax® and Drake Tax Online®, preparers can reduce repetitive work and focus more of their time on their clients.

Developed by Drake in conjunction with its customers, these AI capabilities integrate natively with Drake’s tax preparation workflows and wider product suite. They are designed to help professionals move quickly to turn client documents into populated return fields and allow them to get answers instantly while working in a return, with the preparer firmly in control of all tax review and filing decisions.

“Tax professionals want time back during their busiest months, and they want technology they can trust,” said Noha Ghazouani, Vice President of Product Management at Drake Software. “We’re thoughtfully integrating AI into the familiar Drake workflows they already rely on, making it easier to get help with everyday tasks while keeping tax professionals in control. It’s about supporting their expertise, reducing manual work, and giving them more time to focus on their clients.”

Drake SmartExtract turns client tax documents into return-ready data

Drake SmartExtract applies AI to one of tax preparation’s most time-consuming tasks: moving information from client tax documents into a return. Available in beta for Drake Tax® and Drake Tax Online®, Drake SmartExtract extracts data from supported documents and maps it to the corresponding return fields. Preparers can review and adjust extracted information before adding it to the return, reducing manual rekeying.

Drake SmartExtract will be available for purchase in December at $5 per return, with package pricing as low as $1.50 per return when customers purchase 100 or more returns. Pricing is subject to change. Visit our website for more information.

Supported documents include Forms W-2 and 1098; Forms 1099-B, 1099-DA, 1099-DIV, 1099-INT, 1099-K, 1099-MISC, 1099-NEC and 1099-R; Consolidated 1099 statements; and Schedule K-1 (Form 1065).

For Tax Year 2026, planned form expansion includes Forms 1095-A, 1095-B, 1095-C, 1098-E, 1098-T, 1099-C, 1099-G, 1099-Q, 1099-S, 1099-SA, SSA-1099, W-2G, 5498-SA and 5498 for IRA contributions. Planned expansion also includes additional Schedule K-1 data for Forms 1065, 1041 and 1120-S, including related supplemental statements.

Planned Drake SmartExtract enhancements for Tax Year 2026 include deeper integration with Drake Portals and Drake Workflow. These enhancements will help firms move client documents through preparation more seamlessly, focus review on items that need attention, and identify returns that are ready for preparers.

A reimagined Drake Portals experience simplifies client intake

Drake Portals provides the secure, client-facing starting point for tax preparation. Redesigned for 2026, it makes it easier for clients to upload tax documents, complete requests and communicate securely with their preparer. Its AI-powered document ingestion recognizes and then categorizes supported tax documents and connects them to the appropriate checklist items, reducing the time staff spend sorting through files and tracking what has arrived.

The newly launched Guided Organizer™ helps practices onboard clients with customizable questions and personalized document checklists. Preparers can use a client’s prior-year return to help tailor the intake experience, making it clearer what the client needs to provide.

Together with Drake SmartExtract in supported Drake workflows, Portals seamlessly connects document collection with tax preparation: clients upload their documents securely, AI helps organize them, and Drake SmartExtract extracts supported tax data for preparer review and direct population into the return.

An AI Assistant answers questions within the return workflow

The all-new AI Assistant is built directly into the return preparation workflow in Drake Tax and Drake Tax Online, where preparers can ask questions in natural-language chat. Using the screen they’re viewing and information from the return, it answers tax questions, explains forms and alerts, clarifies how amounts were calculated, and suggests next steps. Preparers can get relevant guidance while continuing their work in Drake. A side-by-side view keeps the Assistant and the return visible together, so preparers can review guidance alongside their work without switching screens.

“Our focus is helping preparers accomplish more this season with the Drake software they already rely on,” said Ghazouani. “These capabilities reduce manual work while keeping tax professionals in charge of the return and the client relationship.”

Preparers should verify AI-assisted information against source documents and apply professional judgment before use.

Feature availability, supported documents, beta terms and pricing vary by product and release.

Explore these AI-powered features across Drake products under Drake Intelligence.

About Drake Software

Founded in 1977, Drake Software provides award-winning tax preparation software that helps tax professionals serve their clients with confidence. Its growing portfolio connects tax preparation with client intake, document sharing, signatures, payments and post-filing support, helping firms work more efficiently.

Media Contact

Colleen Woods Heikka
Sr. Director, Product Marketing
Colleen.woods@Taxact.com
+1-781-588-6339

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SOURCE Drake Software, LLC