New AI-powered document processing helps tax professionals reduce manual data entry and prepare returns more efficiently

Drake Software announced the beta launch of Drake SmartExtract™, a new AI-powered document processing solution for Drake Tax Online that automatically extracts and organizes data from common tax documents, helping tax professionals reduce manual data entry and prepare returns more efficiently.

Drake SmartExtract automatically extracts data from supported tax documents—including W-2s, 1099s, K-1s, and other common tax forms—and populates information directly into tax returns within Drake Tax Online. The result is faster preparation, fewer manual entry errors, and a more streamlined workflow.

“As we prepare for Tax Year 2026, our focus is on giving tax professionals more time to do what matters most: serving their clients,” said Noha Ghazouani, Vice President of Product Management at Drake Software. “AI is helping us deliver practical innovations across the Drake Software ecosystem that reduce manual work, improve efficiency, and simplify tax preparation. Drake SmartExtract is an important milestone in that journey, and we’re excited to continue introducing new capabilities throughout the year that help CPA firms and tax professionals work smarter and with greater confidence.”

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Eligible Drake Tax Online users from the 2025 tax season can access the Drake SmartExtract beta at no additional cost during the beta period and are encouraged to provide feedback that will help shape the product ahead of its broader release.

The beta launch also marks another step toward a more connected Drake ecosystem. Working alongside Drake Portals, Drake Documents, Drake Workflow and other Drake solutions, Drake SmartExtract simplifies document processing and reduces administrative work, allowing tax professionals to spend more time advising clients and growing their businesses.

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Key Features

• AI-powered extraction of data from supported tax documents.
• Reduced manual entry and transcription errors.
• Faster tax return preparation workflows.
• Seamless integration within Drake Tax Online.
• Opportunity for customers to help shape future enhancements through beta participation.

Support for Drake Tax Desktop will begin rolling out in the coming months, expanding access to additional Drake customers ahead of the tax year 2026 season.

Customers can access Drake SmartExtract directly within Drake Tax Online by logging in and selecting the feature from their workspace.