The information from AnnetteB6 is correct. I had two 1099-R's that had state withholding but box 16 was blank. I was going to wait on someone else to reply to confirm this but decided to do it myself anyway. I entered the amount from Box 1 into Box 16. Saved then retransmitted. BINGO! went through. Now, 4 days later still no reject.
When you go back to transmit the return, you will only be transmitting the School District tax forms, not the Fed or State since they have already been transmitted (assuming you already have done so).
Good luck
