I have received the same IRS e-file rejection (twice) for a return with a 1099-R for an IRA->ROTH conversion where there was a tax withholding. The 1099-R is correctly entered. The 8606 looks fine. And there's no info entered in the IRA worksheet in Section VI where inherited IRA's are covered. So, theoretically, Intuit is transmitting both the 1099-R and 8606 data for my return. I think their X12/XML team has some debugging to do... Hopefully, Intuit will reply to this thread with a fix date. Can't file either Fed or state until this is solved.
