Yes, if this is something that should not be reported on your tax return, than you should not report it.
If you later receive a question about it from the IRS you will have your documents in a row to show that you are in the right, and that your tried to remedy the problem by requesting a corrected Form 1099-R.
Ask for a letter from the company saying that they erroneously issued a Form 1099 for $25,000 and then properly issued one for 0. Because you may find that the company transmitted the incorrect Form 1099 to the IRS after all. This way you’ll be able to explain it. It's likely the Form 1099-R has already been transmitted to the IRS. The issuer should prepare a Form 1099 in the correct amount and check a “corrected” box on the form. The corrected form is supposed to cancel out the first one in the IRS system, once you give it time to settle. But if they won't cooperate, you should make sure your records reflect what really happened.
Click here for IRS guidance on "What to do if you have not been issued a corrected Form 1099-R."
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