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@pat wrote:

After reviewing, I have decided to leave the REP'd AZ return in the client's tax record for 2019 rather than report the K-1s as CO. I can opt to not file the AZ since it is not required. I decided to do this after looking at the QBI information that nets the AZ losses against the other QBI. I think this better treatment since CO does not conform in all cases to TCJA and Cares. 

If you think is wrong, let me know.

Thank you all for your helpful comments. I appreciate it.

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For the reasons explained in my previous response, the AZ return does not matter at all to CO.  What CO references is federal treatments and then its own modifications.  What happens on the AZ return that you may otherwise file (or not) makes no difference at all as far as CO is concerned since you're not claiming a credit for AZ tax paid.