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Yes, the way this is reported, not only would you incur a early withdrawal penalty, but you could incur additional tax on the $1600 if this is reported as income on line 1 of the 1099R. I apologize I misread this in my earlier post. 

I may have a solution to your dilemma. Here is what I suggest doing.

1. For the second 1099R. Report it as it is recorded on your 1099R hard copy with the Code 2. if it is reported as taxable income and appears as taxable income in line 5B of your 1040, then exclude the 1099R. Verify this by looking on your 1040.
2. Verify with the pension administrator that the federal income tax was submitted to the IRS.  If so, we can report this as taxes paid so you will receive credit for the payment.

To exclude the income if it is reported as taxable income in your return.

1. Log into your account
2. Select Wages and income>other income
3. Miscellaneous Income, 1099-A, 1099>start
4. Scroll to the bottom of the page to Other Reportable Income
5. Other taxable income, answer yes
6. Then give a brief description of the income and the amount listed. Here you can describe this as "1099 R Mistakenly issued for payment of Federal Taxes Withheld for a Roth conversion.  if you have enough room, you may add that the taxes withheld should have been listed in Box 4 in the original 1099R that reported the rollover. You may truncate this some so that the verbiage can be reduced.
7. For the amount, put in -1600. This will keep this amount from being taxable.

Secondly, you want to receive credit for the $1600 in taxes you paid. The second 1099R did not achieve this purpose. My suggestion is to enter $1600 as taxes paid.

1. Go to the deductions and credits portion in your return.
2. Go to estimates
3. Go to Other Income Taxes
4. Other Income Taxes paid in 2023
5. Withholding not already on a W2 or 1099.

Of course, the best solution is to have a corrected 1099R to:

1. Reporting $8000 in line 1, and have it reported as taxable in line 2.
2. Report the income tax paid in Box 4
3. Report a code "G" in box 7

What this would have done is report this as a Roth Rollover but the $8000 is taxable because you converted some of your tax-deferred plan to a Roth account. You would not have been penalized for a early withdrawal penalty. All these extra steps I provided would not have been necessary if this had been reported correctly.

If the IRS ever questions you about this, save a copy of this email along with my recommended solution. Tell them about the circumstances regarding the reporting of your 1099R and the company refused to issue a corrected one. I stand by my recommendation to correct this.

Hope this helps!!

@Hippo24