If the Form 1099-R is incorrect and shows a taxable amount in box 2a, you can't just omit it from your tax return. The IRS will certainly detect it and send you a bill for unpaid taxes.
If the insurance company will not make the correction, you must instead must file a substitute Form 1099-R (Form 4852) where you can provide explanation and show the correct dollar amounts. Form 4852 is prepared in TurboTax by in the 1099-R section marking the box to indicate the you need to file a substitute Form 1099-R. Filing Form 4852 requires filing by mail.
Still, there might be a reason that the Form 1099-R is correct. It's not unusual for front-line reps to provide bad information regarding Forms 1099-R. Was there a transaction associated with this Form 1099-R but that transaction was not supposed to be taxable and, if so, what was the transaction?
