I have encountered the same issue with the "inherited IRA" conversion e-file rejection by the IRS. I did perform an IRA-to-ROTH taxable conversion. But I do not have an inherited IRA. I reviewed and confirmed that all of the printed forms and worksheets had no spurious entries in any of the fields relating to inheritance. I checked the 1040, IRA worksheet, and forms 8606 to see if anything was entered in the inheritance fields - no info was in the inheritance fields. In another thread on this site, a TT expert advised that if someone mistakenly enters "yes" to the "was this inherited question" and then backs out later (before trying to efile), a phantom 1099-R may be created and carried through. They also indicated that you could delete the phantom form before re-filing. For me, there was no such phantom 1099-R in my forms list. The only way this could be happening to this many folks, where we cannot see any issue in our forms or printouts, is if the EDI data for the return being sent to the IRS is changing the 1099-R distribution code, or if data is being placed in one of the inheritance fields. I hope we get an answer on the bug-fix for this soon.
