Drake Accounting - 940 Schedule A Rejection

Article #: 20059

Last Updated: March 06, 2025

 

Tags: Drake AccountingDAS

Drake Accounting logo

Important  The following issue has been resolved by the IRS.

There is a known IRS error with Form 940 Schedule A e-filing. The error occurs when:

  • Submitting a 940 with a Schedule A

  • Having Credit Reductions in multiple states

  • Having a mixture of credit reduction and non-credit reduction states.

Credit Reduction States for 2024: CA, CT, NY, and VI (Virgin Islands).

Note  For example, a user would see this error when the user has NY checked and completed (this would be a CR state) and they have PA and NJ selected (this would be non-CR states).

Drake Software has submitted a ticket with the IRS to turn this rule off. If you have submitted and have gotten this error, please resubmit once this has been fixed by the IRS.

In order for the calculated amount to flow to Schedule A, you must select Carry deductible interest to Schedule A only on screen DEDM; If you do not, you must prorate the calculated amount to any form or schedule to which the amount applies then test that the change took effect.