Franklin, N.C. – November 06, 2026 -- Drake Software will sell its AI-driven Drake SmartExtract tool from December at $5 per return, with package pricing as low as $1.50 per return for 100 or more returns. The launch is part of a broader AI rollout across software used by more than 70,000 tax professionals.
Drake is adding three AI capabilities for the coming season: SmartExtract (currently in beta), a redesigned Drake Portals client experience, and an AI Assistant embedded in Drake Tax and Drake Tax Online. Drake says it developed them with its customers. Pricing is subject to change.
SmartExtract maps client documents to return fields
SmartExtract, available in beta for Drake Tax and Drake Tax Online, pulls data from supported documents and maps it to the matching return fields. Preparers review and adjust the extracted data before it enters the return, which cuts manual rekeying.
Supported documents include Forms W-2 and 1098, a range of 1099 forms (B, DA, DIV, INT, K, MISC, NEC and R), Consolidated 1099 statements and Schedule K-1 (Form 1065).
For Tax Year 2026, Drake plans to add 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. It also plans additional Schedule K-1 data for Forms 1065, 1041 and 1120-S, including related supplemental statements.
Planned Tax Year 2026 enhancements include deeper integration with Drake Portals and Drake Workflow. The aim is to help firms move documents through preparation, focus review on flagged items and identify returns that are ready for preparers.
Drake Portals adds AI document sorting and Guided Organizer
The redesigned Portals lets clients upload documents, complete requests and message their preparer securely. Its AI ingestion recognizes and categorizes supported tax documents and links them to the right checklist items, reducing the time staff spend sorting files and tracking what has arrived.
The newly launched Guided Organizer onboards clients with customizable questions and personalized document checklists. Preparers can use a client's prior-year return to tailor the intake.
Combined with SmartExtract, the workflow runs from secure client upload to AI organization to data extraction for preparer review and direct population into the return.
AI Assistant answers tax questions inside the return
The new AI Assistant sits in the return preparation workflow in Drake Tax and Drake Tax Online and takes natural-language questions. It uses the on-screen content and return information to answer tax questions, explain forms and alerts, clarify how amounts were calculated and suggest next steps. A side-by-side view keeps the Assistant and the return visible together.
"Tax professionals want time back during their busiest months," said Noha Ghazouani, Vice President of Product Management at Drake Software. She said preparers stay in control of tax review and filing decisions.
Drake advises preparers to verify AI-assisted information against source documents and apply professional judgment. Feature availability, supported documents, beta terms and pricing vary by product and release.