From Mike Liesik:
If an action is mandatory (i.e. draw a card at the beginning of your turn, take a prize for knocking out a Pokemon, place damage counters for an attack, etc.), and you forget to take that action, you do not need your opponent's permission to do it. However, you should immediately call a judge so that things don't get muddled.
If an action is optional (playing a Trainer, attaching an Energy, attacking your opponent's Pokemon, etc.), and you forget to take that action, you must ask your opponent for permission to take that action. For example, if you attach a Grass Energy to your Pokemon, and you wanted to attach a Fire Energy, you must ask your opponent's permission to take back the Grass Energy and attach the Fire energy instead. If he or she says no, you're stuck with the Grass Energy.
While it is mandatory to proceed through both step 2) and step 3), the actions in those steps are optional. You can choose not to attach an Energy card. You can choose not to play a Trainer. You can choose not to attack the defending Pokemon. However, once you have entered one of these steps, you cannot rewind to a previous step without your opponent's permission.
In other words, once you've entered step 3), you cannot leave it without your opponent's permission. If you declare an "illegal" attack, you may ask your opponent if you can back out of step 3). If he or she says yes, you go back to step 2) and can take any actions that you could have taken during that step. If he or she says no, you may either select an attack that is "legal" or pass.
Most often a rewound game state is due to mandatory game actions that were not taken (i.e. placing damage counters for an attack or effect).
Now, lets all play nice.
__________________
Michael Liesik
Pokemon Organized Play
Pokemon USA, Inc.
*********************************************************
Let's break this down.
1. Player A declares an illegal attack. This covered in 7.1.1 of the Penalty Guidelines under "Game-Play Error - Minor"
2. Player B raises his hand for a judge.
3. The judge assess the situation and informs the players of the rules.
a. Player A, you may use another attack that you are able to do without asking your opponents permission. From PUI, If he or she says no [backing out of Step 3], you may either select an attack that is "legal" or pass.
b. You have the proper energy for different attack but you don't want to use it. You want to go back into Step 2. You must ask your opponents permission. From PUI, In other words, once you've entered step 3), you cannot leave it without your opponent's permission. If you declare an "illegal" attack, you may ask your opponent if you can back out of step 3). If he or she says yes, you go back to step 2) and can take any actions that you could have taken during that step.
1. Player B says yes, you may go back to Step 2. You as a judge say ok. A caution is given to Player A, it is noted on the match slip, and you move on.
2. Player B says no, you may not go back to Step 2. You as a judge have indicated to Player A his options. Player A can do the following per PUI. If he or she says no, you may either select an attack that is "legal" or pass. A caution is given to Player A, it is noted on the match slip, and you move on.
PokeDaddy was also wrong. Ooops.
SteveP, I believe that your quote may not be wholly correct.
Let's all play nice.
PokeDaddy