In Lacerte, when setting a return as a multi-state return, the following diagnostics may generate:
- S corporate module: (State) business allocation percentage is 0%. Please review for accuracy. (ref. #25660)
- Corporate module: (State) business allocation percentage is 0%. Please review for accuracy. (ref. #25692)
To view state apportionment factors and percentages:
- Select the Forms tab.
- In the Form panel, select Apport Summary.
- Review the states listed on the Multi-State Apportionment Summary for accuracy.
- After reviewing your apportionment summary, if the zero is accurate, you can ignore the diagnostic as it's informational only and won't stop you from e-filing.
If the diagnostics are incorrect:
- Make sure the Property Factor, Sales Factor, and Payroll Factor are apportioned correctly (this will depend on the Apportionment Factors for each state).
- You can override the apportionment rate on Screen 50, Apportionment for S corporations, or Screen 52, Apportionment for Corporations.
If the return isn't a multi-state return:
- Go to Screen 1, Client Information.
- Scroll down to the State Information section.
- Unselect the box labeled Multi-State Return?