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How to resolve Lacerte diagnostics for state business allocation percentage

by Intuit Updated 8 months ago

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:

  1. Select the Forms tab.
  2. In the Form panel, select Apport Summary.
  3. 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:

  1. Go to Screen 1, Client Information.
  2. Scroll down to the State Information section.
  3. Unselect the box labeled Multi-State Return?
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