What part of "The above diagnostic is specific to California electronic filing of Fiduciary returns. It will trigger for any CA resident Fiduciary return, or for any CA non-resident Fiduciary return that has a Contract and Straddle entry  . . .If the amounts are supposed to be sourced to CA, then you can e-file the Federal return, but you will have to paper file the California return" do you not understand?

If you want to complain, contact the Franchise Tax Board, don't expect Lacerte to break state rules.