diff --git a/src/components/ReportActionItem/ReportPreview.tsx b/src/components/ReportActionItem/ReportPreview.tsx
index f1aa1751dd84..c480487d7bac 100644
--- a/src/components/ReportActionItem/ReportPreview.tsx
+++ b/src/components/ReportActionItem/ReportPreview.tsx
@@ -133,7 +133,7 @@ function ReportPreview({
 
     const hasReceipts = transactionsWithReceipts.length > 0;
     const isScanning = hasReceipts && areAllRequestsBeingSmartScanned;
-    const hasErrors = hasMissingSmartscanFields || (canUseViolations && ReportUtils.hasViolations(iouReportID, transactionViolations));
+    const hasErrors = hasMissingSmartscanFields || (canUseViolations && ReportUtils.hasViolations(iouReportID, transactionViolations)) || ReportUtils.hasActionsWithErrors(iouReportID);
     const lastThreeTransactionsWithReceipts = transactionsWithReceipts.slice(-3);
     const lastThreeReceipts = lastThreeTransactionsWithReceipts.map((transaction) => ReceiptUtils.getThumbnailAndImageURIs(transaction));
 
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 8dc1c9967f13..5f8453268111 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -5286,6 +5286,15 @@ function shouldCreateNewMoneyRequestReport(existingIOUReport: OnyxEntry<Report>
     return !existingIOUReport || hasIOUWaitingOnCurrentUserBankAccount(chatReport) || !canAddOrDeleteTransactions(existingIOUReport);
 }
 
+/**
+ * Checks if report contains actions with errors
+ */
+
+function hasActionsWithErrors(reportID: string) : boolean{
+    const reportActions = ReportActionsUtils.getAllReportActions(reportID ?? '');
+    return !!Object.values(reportActions ?? {}).find((action) => !isEmptyObject(action.errors));
+};
+
 export {
     getReportParticipantsTitle,
     isReportMessageAttachment,
@@ -5497,6 +5506,7 @@ export {
     isJoinRequestInAdminRoom,
     canAddOrDeleteTransactions,
     shouldCreateNewMoneyRequestReport,
+    hasActionsWithErrors,
 };
 
 export type {
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index af5c40836c74..3e28e33477a8 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -715,31 +715,6 @@ function buildOnyxDataForMoneyRequest(
                 pendingFields: clearedPendingFields,
             },
         },
-        {
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${chatReport?.reportID}`,
-            value: {
-                ...(isNewChatReport
-                    ? {
-                          [chatCreatedAction.reportActionID]: {
-                              // Disabling this line since transaction.filename can be an empty string
-                              // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
-                              errors: getReceiptError(transaction?.receipt, transaction.filename || transaction.receipt?.filename, isScanRequest),
-                          },
-                          [reportPreviewAction.reportActionID]: {
-                              errors: ErrorUtils.getMicroSecondOnyxError(null),
-                          },
-                      }
-                    : {
-                          [reportPreviewAction.reportActionID]: {
-                              created: reportPreviewAction.created,
-                              // Disabling this line since transaction.filename can be an empty string
-                              // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
-                              errors: getReceiptError(transaction?.receipt, transaction.filename || transaction.receipt?.filename, isScanRequest),
-                          },
-                      }),
-            },
-        },
         {
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${iouReport.reportID}`,