It's not hood with IRS. As it's not in their system as ROLLOVER, they see it strictly as unreported taxable income. Their proposed change to the return is to make 15b read same as 15a. Thus taxing the amount and of course adding penalties for underpayment. I already replied to the original letter, indicating that amount was included on return and that it was indicated as ROLLOVER. The agent seems to be ignoring the fact it is a ROLLOVER since ROLLOVER isnt indicated on the 1040 as efiled.
