@Balditax: Thanks, but near as I can tell I did the TTax 1099-R correctly. There is a withholding for my RMD and no more than that. The only place in my filed return that shows the correct numbers withheld from the conversion (withheld from outside funds) is on the TTax page "Estimates & Other Taxes" -> "Other Income Taxes". The amount I withheld when using "Direct Pay" had a cushion and I made the payments within 2 days of the conversion. I kept copies of the transaction confirmations to avoid underpayment penalty. TTax form said I did not need to file a 2210 so I didn't. The IRS has my return because they have mentioned all of the correct amounts. And, because I paid the direct pay my taxes paid are well over 100% of prior year (which is likely why TTax said I didn't need to file a 2210), but you raise a good point as I am going to convert more this year and probably won't be able to cough up enough outside cash to meet 100% of this year. I'll try to remember this next year.
My 1099 is "taxable amount not determined" and coded IRA 7 which is correct. It shows the total amount distributed without mention of the conversion.
I guess I simply need to send another letter to IRS spelling out "their error" but they seem to be set on giving me back my tax payment anyway. Maybe the "Operations Manager" has been in the seat only since Jan.
