@ThomasM125
Thanks for your perspective. I was able to enter the content of the 480.7C succesfully. I am planning to file via mail so I can physically attach the form itself and hopefully that will provide the IRS with full context.
As far as the Tax Withheld I may need further guidance as it is an uncommon situation. The income that was rollover is Exempt from Federal Taxation because it was earned while I was a bona-fide resident of Puerto Rico and I was locally employeed. The key now is that in principle, as PR withheld the local taxes on the rollover, the amount in the personal IRA has already been taxed. I need to figure out how to ensure there is no additional taxation in future distributions since the amount was already taxed by PR and is not taxable by the IRS.
