You don't have to "furnish the IRS" anything, because they already have it. You know those documents you got at the closing showing your $10K down payment? The IRS also has a copy of that information. So they already know.
Basically, you'll enter the 1099-R *exactly* as printed. Then pay attention to the screens that will follow so that you make the correct selections. Now understand this:
The withdrawal *WILL* be taxable income and it *WILL* increase your AGI. No way around that. Period. However, when you tell the program that it was used for a "qualified" purpose (purchase of first home) that will cancel out the 10% early withdrawal penalty on the withdrawal that would otherwise be assessed.
Also be aware that only a maximum amount of $10,000 qualifies for the penalty exception.
