"What are you doing on New Year's Day?"
Translation:Was macht ihr an Neujahr?
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That would be a good translation as well.
And I think you used to be able to use it in this exercise.
But an editor for the Pearson course ( https://www.duolingo.com/comment/24066422 ) touched this sentence last, less than a week ago, and as far as I can see, the reports saying that Was machst du...? and Was machen Sie...? should be accepted are all younger than that; I presume that the Pearson editor removed those alternatives.
I've no idea why.