I received a notice CP2000 from the IRS stating I did not enter a 1099-R into my 2016 income and that I owed additional tax on that amount. I went back to my Turbo Tax and saw that it was entered, however, the taxable amount did not show up on my 1040 form. However, when I removed the 1099-R entry from Turbo Tax my running tax total went down, so it looks like I paid tax on the 1099-R even though it did not show up on the 1040 form.
How do I resolve this?
Did you enter an amount in box 2a? Or is the "taxable amount not determined" checkbox selected in 2b? (Can't be both)
What is the code in box 7, and does it match what you selected in the program?
is the IRA/SEP/SIMPLE box check on your paper form, and in the program?