I took your post to be your sibling, not the sibling of the beneficiary. You are correct, the beneficiary's sibling is the same as the beneficiary for a qualified distribution.
Yes, there is a chance of hearing from the IRS because the 1099-Q is not reported. But there is no way to report it if it's a fully qualified distribution. Entering it in TT still enters nothing on the tax forms.
Others have reported trying to use workarounds, but they still got an IRS notice. I have noticed that the number of people reporting an IRS notice, for a missing 1099-Q, has dropped significantly, in the last year. I think the IRS has noticed the "error of their ways".
