An individual has a Traditional IRA with a basis and no remaining balance and an active Inherited IRA with no basis and a balance. After all the 1099-R forms are input and Turbo Tax is restarted, Turbo Tax insists on using the basis from the Traditional IRA against the activity on the Inherited IRA. This is resulting in an under-reporting of taxable income. If you redo the 1099-R form processing for the Inherited IRA, Turbo Tax corrects itself. Yet, when you save the return and restart Turbo Tax, you are back to the original error.
