Thank you all for the help.
I think I've mis-stated the situation and created confusion.
I went back and looked at my year end summary statement. It shows that the fund company did redeem / sell shares for cash then purchased shares at the same price and put that money in the IRA. So I do think that I will need to enter this additional 1099-B into Turbo Tax and pay taxes on that. I guess I was confused as to why I would pay taxes when I never received income from the sale (physically). And on the 1099-B it says in asteriks that they are not reporting this to the IRS. I've never seen that before and I guess if they aren't reporting it, why should I?
I'm in the process of contacting them and I think I'm going to have to enter the 1099-B and take the "hit" even though I never received any money (so to speak)
