The IRS sent a letter stating that "retirement income taxable" from the form 1099-R was missing from our 2023 tax return; however, we reported the amount shown in the 1099-R and also selected in turbo tax that the entire balance in the traditional IRA was converted to a Roth IRA within the 2023 tax year. Our 2023 tax return also shows this amount. The IRS is trying to tax us on the balance in the 1099-R, but given the conversion to the Roth, we should not owe any taxes. My spouse also reported the same in our tax return, and there were no issues raised for their account.
