I had the same issue with TurboTax not accepting the (3-letter) State code and (4-digit) zip code for Australia in the Additional Payer Information Box of 1099 Forms. It will only accept 2-letter and 5-digit codes. You the get an error and the Warning that you cannot e-file.
I found last year that if you enter the Payer's TIN, enter the Country, Street address, City, but leave the State and Zip boxes blank, then it is accepted and no problem with filing.
I had the same problem this year, and the above solution worked again.
