Look at TurboTax sheet "1040 Wks" Line 4, the sub-line labelled "Pensions and Annuities". Right-click on the box there and see that it's data source is Line 25 of the TurboTax worksheet "1099-R Summary". Go to that worksheet and see that Line 25 is labelled "Gross distribution transferred to Form 1040, Line 16a". Obviously that label should be changed from "16a" to "4a", and that is a mistake on a TurboTax worksheet, not an IRS Form. Also note a similar labeling mistake on Line 32d of sheet "1099-R Summary".
But the bigger problem is that when there is an amount on Line 25 of the 1099-R Summary worksheet, the 1040 Wks Line 4 that is supposed to take its entry from there remains blank. Fixing that will also fix this Line 4a problem.
So I would encourage all who care about this to report its as described above, since just complaining that gross distributions are calculated as less than the taxable portion hasn't produced any action. So far, I'd say it's not the IRS that "doesn't seem to care", it's TurboTax.
