A lower tier partnership (in State A) issues a K-1 to another upper tier partnership with federal K-1s and some state K-1s. The upper tier partnership (also in State A) picks up the K-1 income and issues K-1 to individual partners that includes the income of the upper tier partnership and the K-1 income from the lower tier partnership. My understanding is that in order for the lower tier state K-1 income to flow thru to the individual partners the upper tier partnership will also have to issue the state K-1s for those states just as the lower tier partnership did. Can anyone please confirm.