How to Change Return File Type in Drake Tax Software

Sometimes, a return might be created under the wrong type, or you may need to convert it to another entity type for filing purposes. Drake Tax software makes this process simple with its built-in Change File Type feature. For example, a Form 1120 return can be converted to a Form 1120-S, or an individual return (Form 1040) can be converted to another type, such as a Form 706 or a partnership return.

The Change File Type process automatically transfers key details, including name, address, fiscal year, depreciation data, and Screens 6 through 10. For corporation-to-S corporation conversions, Balance Sheet and Schedule A information also carries over.

In short, changing the return file type in Drake allows you to easily switch between individual, business, or other entity modules, ensuring data accuracy without having to start from scratch.

Before You Begin

• Ensure that you are using the latest version of Drake Tax.
• Backup your data before making any changes to the return file type.
• Only users with administrative or preparer-level permissions should perform this change.

Steps to Change a Return File Type

1. In Drake Tax, go to Tools > File Maintenance > Change File Type.
2. Enter or select the SSN or EIN of the return you want to convert, then click Continue.
3. Confirm your selection. The current return type will appear grayed out and unavailable.
4. From the available options, choose the new return type you want to convert into.
   • If converting from an individual (SSN) to a business return (EIN), you’ll be prompted to enter the new EIN.
5. Click Continue to begin the conversion.
6. Once the conversion completes, click OK to return to the Home window.
7. To ensure the changes are properly indexed, go to:
   • Tools > Repair Index Files > Repair All Indexes > Continue > OK > Exit.
8. Reopen the return and verify the file and data conversion.

To Revert to the Original File Type 

If you want to undo the conversion and restore the original file:

1. Delete the converted return file (ensure you delete the correct one).
2. Restore the backup you made prior to conversion.

Note: Deleted files cannot be recovered unless they are restored from a backup, so proceed with caution.

PPR or Drake Tax 1040 Limitations

• You can only convert a business return to another business return type.
• You cannot change a business return to a 1040 or vice versa.
• A file type can be changed only once using the Tools menu.
• If you try to convert again, you’ll see this message:
  “The return type has already been changed on this tax return. Additional changes not allowed.”

Note: A 1041 return cannot be changed to any other return type.

Changing a return file type in Drake Tax is a quick and efficient process. Always back up your data, run Repair Index Files after conversion, and verify details before filing. This ensures smooth, error-free transitions between return types.

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