State tax filing

I agree.  My state's tax department (PA) vaguely alluded to me being able to exempt them, so that is what I am doing.  Not trying to break the law, just trying to do my taxes.

 Little did I know when I bought them on the secondary market that I would have to figure this out.  Buying them on the primary market with an OID is much simpler on the tax return.  That is what I am doing moving forward.  I also don't purchase anything with a K-1 with post tax money for the same reason.