I would start by calling the number for more information on the IRS letter. 90% of IRS letters are computer generated - if they receive a 1099-R and the box 1 amount is not anywhere on the tax return the computer is not smart enough to figure out why so it generates a letter.
First call the IRS and explain the circumstances. That might take care of it.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
