Sorry, I am just getting back to this today. I am a little uncomfortable with the whole 1099-X filing, but agree that it is probably the best approach given that TurboTax can't seem to be bothered with it. On the Form 5329 after adding the RC notation on line 54, should line 55 show the penalty amount or zero. I am assuming zero since I am not adding any new amounts on the 1099-X.
