There were two related issues:
- A bug related to the preparation of Form 8606 when the individual has basis in their own traditional IRAs and received a distribution from an inherited IRA. This is the bug that has been fixed.
- Intuit (or maybe the IRS, but it seems like it was done by Intuit) chose to block the filing of any tax return that included Form 8606 Part I because the e-filing system had no way to determine if the Form 8606 was affected by #1 or not. That's the subject of this thread. This filing block has to be lifted separately and may or may not have been done.
