How do I correct IRS Reject "F1040-034-07" for an individual return in Drake Tax 2021 or 2022?
On February 26, 2024, it was brought to our attention that the IRS changed a business rule related to the reporting of Form 1099-R withholding on e-filed Forms 1040 for tax years 2021 and 2022. An update was released February 27, 2024, correcting this issue in Drake Tax 2021 and 2022. After installing updates, preparers should recalculate and retransmit affected returns.
On March 11, 2024, the IRS reactivated this business rule in error for tax years 2021 and 2022. This issue was resolved on March 13, 2024. Affected 2021 and 2022 returns will be recycled by Drake Software’s e-file system. No additional action is needed.