Did you begin paying in estimated tax payments when the distribution was made? If so, you can avoid any underpayment penalty by the technique of "annualizing" your income. If you just ignored the requirement to make them even after receiving the distribution, I can't see the IRS abating the penalty.
If annualizing is necessary to reduce an underpayment penalty, the entire lump-sum payment will be treated as income in the quarter that it is received and, generally, the entire estimated payment for the tax liability attributable the lump-sum distribution would also need to be paid by the due date for the tax quarter in which the distribution was received, otherwise there can be an underpayment penalty.